@CHICKENTIKKA82 how are your chickens going? Still improving I hope!
To answer your question, I'm not sure what I used instead of the wood shavings, possibly some dustless looking straw, it was a couple years back and only temporary as they soon after went into the big coop which did have...
I wouldn't put DE anywhere near a bird with respitory symptoms. If you look up it's directions it's not supposed to be breathed in to start with so it's very likely it's dusty nature could cause further distress to them.
What are you using for bedding and how big/ well ventilated is the...