If I am finding that "free play" while I prep doesn't work (for all the reasons you listed!!), I will set everyone up at the table while I prep. The older ones can color (if they don't want to, tough. They still sit at the table). The babies can have some special toys that they don't usually see.
I have also recently started making and using sensory bags. I have some large ones made for the big kids, and some smaller ones for the babies. That will usually hold them over for just long enough!!