Couch displayed by lots of arms (4)
I believe the answer is:
'couch' is the definition.
'displayed by lots of arms' is the wordplay.
'displayed by' says the answer is hidden in the clue.
'SOFA' can be found hidden inside 'lots of arms'.
(Other definitions for sofa that I've seen before include "Upholstered seating" , "Long upholstered seat with back and arms" , "Wide padded seat" , "Upholstered seat for two or more" , "Upholstered seat for more than one person" .)