[step:Define the decomposition $w = xyz$]
Using the indices $i, j$ from the previous step, define
\begin{align*}
x &:= a_0 a_1 \cdots a_{i-1}, & y &:= a_i a_{i+1} \cdots a_{j-1}, & z &:= a_j a_{j+1} \cdots a_{n-1} v.
\end{align*}
Here $x$ is the empty word when $i = 0$, $y$ is nonempty because $i < j$, and $z$ consists of the letters $a_j, \dots, a_{n-1}$ of the prefix followed by the original suffix $v$.
Then $w = xyz$ by concatenation, and we compute the required length bounds:
\begin{align*}
|y| &= j - i \geq 1 \qquad (\text{since } i < j), \\
|xy| &= i + (j - i) = j \leq n \qquad (\text{since } j \leq n).
\end{align*}
Record the state-reaching properties of the decomposition:
\begin{align*}
\hat{\delta}(q_0, x) &= q_i, && \text{(the run of } D \text{ on } x \text{ ends in } q_i\text{)} \\
\hat{\delta}(q_i, y) &= q_j = q_i, && \text{(the run of } D \text{ on } y \text{ starting at } q_i \text{ returns to } q_i\text{)} \\
\hat{\delta}(q_i, z) &\in F. && \text{(the run of } D \text{ on } z \text{ starting at } q_i \text{ ends in } F\text{, because } w \in L\text{)}
\end{align*}
The first identity: $\hat{\delta}(q_0, a_0 a_1 \cdots a_{i-1}) = q_i$ by the definition of the state sequence. The second: $\hat{\delta}(q_i, a_i a_{i+1} \cdots a_{j-1}) = q_j$ by iterating $\delta$ from $q_i$ for $j - i$ steps and reading $a_i, \dots, a_{j-1}$; by the choice of $(i, j)$, $q_j = q_i$. The third: combining the previous two, $\hat{\delta}(q_0, xy) = q_j = q_i$, and since $w = xyz \in L$,
\begin{align*}
\hat{\delta}(q_0, w) &= \hat{\delta}(q_0, xyz) = \hat{\delta}(\hat{\delta}(q_0, xy), z) = \hat{\delta}(q_i, z) \in F,
\end{align*}
using the fundamental concatenation identity $\hat{\delta}(q, uv) = \hat{\delta}(\hat{\delta}(q, u), v)$ for the extended transition function, and the acceptance criterion $w \in L = \mathcal{L}(D)$.
[/step]