Summary: Team Chrono, Ayla, Marle. Boost Magic def as much as possible before right. When battle says "defense is down" attack the right-most pod. Otherwise, attack the left-most pod, then center enemy.
Ayla, Chrono, and Marle. Use Marle to pretty much use Haste and heal exclusively. The Chrono/Ayla double tech "Falcon Hit" and "Volt Bite" work well. Otherwise, use Chrono Spin-slash and Ayla Triple Kick.
EQUIPMENT: First, give Marle your best defensive armor, she will be your life line. Remember only one piece has to have status immunity to revive the buff but it will be overridden. Prioritize Marles Physical DEF as she has decent Mag Def. I would recommend Haste Helm, Prism Dress, and a silver stud(gold if you have 2). Ayla is the opposite, boost her Mag Def and she will be nearly indestructible. Give her the her Prism Helm, Prism Dress (charm Zeal Right hand in Omen before Lavos), Prism Specs (gold stud is good Alt) and she will brutalize the glorified space bug. Chrono, give him whatever combo of armor plus Golden Stud (Charm Flyclops in Black Omen if needed). Status immunity is nice but not vital. Chrono use Frenzy on the Pod on the Left, Ayla use Tripple Kick. DO NOT USE MAGIC OR YOU WILL HEAL IT. Once it goes down begin spamming Luminarie immediately! With Ayla, use Triple Kick on Center or Dino Tail (when she is low health). Pay attention for when the battle message says “Lavos lowers defense to resurrect pods”, then focus Ayla on the “pod” on the right. The battle messages will let you know when to expect the pods resurrection, I would highly recommend not queuing up a bunch of attacks ahead of time because of this. Always prioritize the Pod on the Left as it will heal others.