[step:Generate infinitely many solutions from the fundamental one]
Let $(x_1, y_1)$ be the positive integer solution constructed above (i.e., $(p_{n-1}, q_{n-1})$ if $n$ even, $(p_{2n-1}, q_{2n-1})$ if $n$ odd), so $x_1^2 - d y_1^2 = 1$ and $x_1, y_1 > 0$. Define $\alpha := x_1 + y_1 \sqrt{d} \in \mathbb{Z}[\sqrt{d}]$. Its norm is
\begin{align*}
N(\alpha) &:= \alpha \cdot \alpha' = (x_1 + y_1 \sqrt{d})(x_1 - y_1 \sqrt{d}) = x_1^2 - d y_1^2 = 1.
\end{align*}
The norm is multiplicative: for $\alpha, \beta \in \mathbb{Z}[\sqrt{d}]$, $N(\alpha \beta) = N(\alpha) N(\beta)$ (a routine consequence of $\sigma$ being a ring homomorphism). Hence for every $k \geq 1$,
\begin{align*}
N(\alpha^k) &= N(\alpha)^k = 1.
\end{align*}
Write $\alpha^k = x_k + y_k \sqrt{d}$ with $x_k, y_k \in \mathbb{Z}$ (this representation exists and is unique because $\mathbb{Z}[\sqrt{d}]$ is a free $\mathbb{Z}$-module on $\{1, \sqrt{d}\}$). Then
\begin{align*}
x_k^2 - d y_k^2 &= N(\alpha^k) = 1,
\end{align*}
so $(x_k, y_k)$ satisfies Pell's equation for every $k \geq 1$.
Finally, since $\alpha = x_1 + y_1 \sqrt{d} > 1$ (because $x_1 \geq 1$ and $y_1 \geq 1$, so $\alpha \geq 1 + \sqrt{d} > 1$), the sequence $(\alpha^k)_{k \geq 1}$ is strictly increasing and unbounded. Hence the pairs $(x_k, y_k)$ are pairwise distinct, and $y_k \to \infty$. We need $x_k, y_k > 0$: this holds because $\alpha > 0$ and $\alpha > 1$ imply $\alpha^k = x_k + y_k \sqrt{d} > 0$ with growing $y_k > 0$, and then $x_k = \alpha^k - y_k \sqrt{d}$; using $\alpha^k > 1$ and a standard induction (or direct computation from the recursion $x_{k+1} = x_1 x_k + d y_1 y_k$, $y_{k+1} = x_1 y_k + y_1 x_k$), $x_k > 0$ as well.
Therefore $\{(x_k, y_k) : k \geq 1\}$ is an infinite family of positive integer solutions to $x^2 - d y^2 = 1$. This completes the proof.
[/step]