Dash is versatile in use and can play the role of a comma, semicolon or a colon. Dash here plays the role of a colon(:) - the colon can be used to provide further explanation for what comes before it. The dash, as a replacement of a colon, plays the same role here.
Without "that", the latter clause ( " at some time....greatly reduced their numbers") does not have much meaningful bearing to the first clause as the author intended. It is required to establish that the scientists believe even the latter clause and hence "that" is required to be repeated.
(A) is implying that our ancestors greatly reduced their own numbers (this is incorrect because it was the event that greatly reduced ancestors). When we have an independent clause followed by a participle phrase (one that starts with a gerund and serves as an adjective clause), the participle phrase modifies the subject of the sentence.
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Dash is versatile in use and can play the role of a comma, semicolon or a colon. Dash here plays the role of a colon(:) - the colon can be used to provide further explanation for what comes before it. The dash, as a replacement of a colon, plays the same role here.