[guided]We must show $|K| \subseteq |K'|$. The natural approach is to prove simplex by simplex: for every $\sigma \in K$, show $\sigma \subseteq |K'|$.
The obstruction is that a simplex $\sigma$ of $K$ is typically *not* a simplex of $K'$; its interior is instead cut into smaller pieces by the barycenters of $\sigma$ and its faces. So we cannot use $\sigma$ directly; we must build up $\sigma$ from smaller $K'$-simplices.
The geometric intuition: the barycenter $\hat{\sigma}$ lies in the interior of $\sigma$, and one can express any point $x \in \sigma$ as a convex combination of $\hat{\sigma}$ and some point $y$ on the boundary $\partial \sigma$. The boundary is a union of proper faces, which have strictly smaller dimension, so by induction $y \in |K'|$. Then the $K'$-simplex containing $y$, together with $\hat{\sigma}$, gives a larger $K'$-simplex containing $x$.
**Base case**: For $\sigma = \langle a \rangle$, the barycenter is the vertex $a$ itself, and $\langle a \rangle \in K'$ directly.
**Inductive step**: Fix $n \geq 1$ and suppose the claim holds for every simplex of dimension $< n$. Let $\sigma \in K$ be an $n$-simplex and $x \in \sigma$.
The barycenter $\hat{\sigma} \in \mathring{\sigma}$ sits in the interior: expanding in barycentric coordinates, $\hat{\sigma} = \frac{1}{n+1}(a_0 + \cdots + a_n)$, so all coordinates equal $\frac{1}{n+1} > 0$.
**Case 1**: $x = \hat{\sigma}$. Then $\langle \hat{\sigma} \rangle \in K'$ (the length-one chain $\sigma$ gives this $0$-simplex), and $x \in |K'|$.
**Case 2**: $x \neq \hat{\sigma}$. Consider the ray from $\hat{\sigma}$ through $x$: parametrised by $\lambda \geq 0$, the point $\hat{\sigma} + \lambda (x - \hat{\sigma})$ equals $\hat{\sigma}$ at $\lambda = 0$ and $x$ at $\lambda = 1$. Since $\hat{\sigma} \in \mathring{\sigma}$, for small $\lambda > 0$ we are still in $\mathring{\sigma}$; as $\lambda$ increases, eventually the ray exits $\sigma$. Let $\lambda_0$ be the smallest $\lambda \geq 1$ with the point on $\partial \sigma$ (this exists because $\sigma$ is compact and the ray must exit). Set
\begin{align*}
y = \hat{\sigma} + \lambda_0 (x - \hat{\sigma}) \in \partial \sigma.
\end{align*}
Then $x$ sits on the segment $[\hat{\sigma}, y]$: solving for $x$ gives
\begin{align*}
x = \left(1 - \tfrac{1}{\lambda_0}\right) \hat{\sigma} + \tfrac{1}{\lambda_0}\, y,
\end{align*}
a convex combination (the coefficients are non-negative and sum to $1$, using $\lambda_0 \geq 1$).
Now $\partial \sigma = \sigma \setminus \mathring{\sigma}$ is covered by the proper faces of $\sigma$, each of dimension $\leq n - 1 < n$. Pick a proper face $\tau$ of $\sigma$ with $y \in \tau$. Then $\tau \in K$ (faces of simplices are simplices by the complex axiom), and by the inductive hypothesis $\tau \subseteq |K'|$; so $y$ lies in some $K'$-simplex $\langle \hat{\tau}_0, \ldots, \hat{\tau}_{k-1} \rangle$ indexed by a chain $\tau_0 \subsetneq \cdots \subsetneq \tau_{k-1} \subseteq \tau$.
Since $\tau_{k-1} \subseteq \tau \subsetneq \sigma$, appending $\sigma$ extends the chain strictly:
\begin{align*}
\tau_0 \subsetneq \cdots \subsetneq \tau_{k-1} \subsetneq \sigma.
\end{align*}
The corresponding $K'$-simplex $\langle \hat{\tau}_0, \ldots, \hat{\tau}_{k-1}, \hat{\sigma} \rangle$ has a convex hull that contains both $y$ and $\hat{\sigma}$, and therefore the entire segment between them, which contains $x$.
Thus $x \in |K'|$ in either case. The induction closes, yielding $\sigma \subseteq |K'|$ for every $\sigma \in K$, hence $|K| \subseteq |K'|$.[/guided]