[step:Handle the non-generic sub-case by switching to a better $2$-separator]Suppose instead that $\delta(G_i) = \Delta(G)$ for some $i$; by relabelling, say $\delta(G_1) = \Delta(G)$.
[claim:$\deg_{G_1}(v) = \Delta(G)$ for every $v \in V(G_1)$]
[proof]
By definition, $\delta(G_1) = \min_v \deg_{G_1}(v) = \Delta(G)$, so $\deg_{G_1}(v) \geq \Delta(G)$ for every $v \in V(G_1)$. For the upper bound: $v \in V(G_1) = C_1 \cup \{x, y\}$.
- If $v \in C_1$, then $N_{G_1}(v) = N_G(v) \cap V(G_1)$ (the added edge $xy$ does not touch $v$), so $\deg_{G_1}(v) \leq \deg_G(v) \leq \Delta(G)$.
- If $v = x$, then $N_{G_1}(x) = (N_G(x) \cap (C_1 \cup \{y\})) \cup \{y\}$ — in other words, $x$'s neighbours in $G_1$ are $x$'s original neighbours in $C_1 \cup \{y\}$, plus $y$ via the added edge (if $y \notin N_G(x)$). So $\deg_{G_1}(x) \leq |N_G(x) \cap C_1| + 1$ (the $+1$ for $y$, regardless of whether $xy \in E(G)$).
- If $v = y$, similarly $\deg_{G_1}(y) \leq |N_G(y) \cap C_1| + 1$.
Combining upper and lower: $\deg_{G_1}(v) = \Delta(G)$ for every $v$.
[/proof]
[/claim]
In particular:
\begin{align*}
|N_{G_1}(x) \cap C_1| &= \deg_{G_1}(x) - |\{y\}| = \Delta(G) - 1, \\
|N_{G_1}(y) \cap C_1| &= \Delta(G) - 1.
\end{align*}
(Here $|\{y\}| = 1$ accounts for $y \in N_{G_1}(x)$ via the edge $xy \in E(G_1)$.) And the neighbourhood of $x$ in $C_1$ is the same in $G$ and in $G_1$ (adding $xy$ does not affect neighbours inside $C_1$), so $|N_G(x) \cap C_1| = \Delta(G) - 1$ and $|N_G(y) \cap C_1| = \Delta(G) - 1$.
[claim:$xy \notin E(G)$, $k = 2$, and each of $x, y$ has exactly one neighbour in $C_2$]
[proof]
Since $\deg_G(x) \leq \Delta(G)$:
\begin{align*}
\Delta(G) \geq \deg_G(x) = |N_G(x) \cap C_1| + \sum_{j \geq 2} |N_G(x) \cap C_j| + \mathbb{1}[xy \in E(G)].
\end{align*}
Substituting $|N_G(x) \cap C_1| = \Delta(G) - 1$:
\begin{align*}
\sum_{j \geq 2} |N_G(x) \cap C_j| + \mathbb{1}[xy \in E(G)] \leq 1. \tag{$\ast$}
\end{align*}
We also have a lower bound. Since $\kappa(G) = 2$, no single vertex disconnects $G$; in particular $\{y\}$ alone does not separate $G$. So in $G - y$, the vertex $x$ is connected to every $C_j$ with $j \geq 2$, which requires that $x$ have at least one neighbour in $\bigcup_{j \geq 2} C_j$ (vertices of $\bigcup_{j \geq 2} C_j$ are not adjacent to $V(G_1) \setminus \{y\}$ in $G - y$ except through $x$). Formally: $G - y$ is connected, and the component structure of $G - y$ must link $C_1$ to each $C_j$ ($j \geq 2$); the only possible links go through $x$ (since $S \setminus \{y\} = \{x\}$). So $x$ has at least one neighbour in each $C_j$ for $j \geq 2$, and in particular
\begin{align*}
\sum_{j \geq 2} |N_G(x) \cap C_j| \geq k - 1 \geq 1. \tag{$\ast\ast$}
\end{align*}
Combining ($\ast$) and ($\ast\ast$):
\begin{align*}
1 \leq \sum_{j \geq 2} |N_G(x) \cap C_j| \leq 1 - \mathbb{1}[xy \in E(G)].
\end{align*}
This forces $\mathbb{1}[xy \in E(G)] = 0$ (i.e., $xy \notin E(G)$) and $\sum_{j \geq 2} |N_G(x) \cap C_j| = 1$.
Hence $\sum_{j \geq 2} |N_G(x) \cap C_j| = k - 1 = 1$, so $k = 2$. And $|N_G(x) \cap C_2| = 1$: $x$ has a unique neighbour in $C_2$, call it $x'$.
By the identical argument with $y$ in place of $x$: $|N_G(y) \cap C_2| = 1$, and $y$ has a unique neighbour $y' \in C_2$ (possibly $y' = x'$).
[/proof]
[/claim]
We now split on $|C_2|$.
*Sub-case $|C_2| = 1$.* In this sub-case $C_2 = \{w_0\}$ for a single vertex $w_0$. Since both $x'$ and $y'$ lie in $C_2$ and are the unique neighbours of $x$ and $y$ there, $x' = y' = w_0$. The degree of $w_0$ in $G$ is $\deg_G(w_0) = |N_G(w_0) \cap (C_1 \cup \{x, y\})| = |\{x, y\}| = 2$ (since $C_1$ and $C_2$ are disjoint components of $G - S$, $w_0$ has no neighbours in $C_1$). We handle this sub-case by direct colouring extension.
Consider $G - w_0$. Its vertex set is $C_1 \cup \{x, y\}$, and it inherits exactly the edges of $G[C_1 \cup \{x, y\}]$. We verify $G - w_0$ is connected: $G[C_1]$ is connected (as a component of $G - S$), $x$ has $\Delta(G) - 1 \geq 2$ neighbours in $C_1$, $y$ has $\Delta(G) - 1 \geq 2$ neighbours in $C_1$, so $G - w_0 = G[C_1 \cup \{x, y\}]$ is connected.
We produce a proper $\Delta(G)$-colouring of $G - w_0$, splitting on $\Delta(G - w_0)$. Since $\Delta(G - w_0) \leq \Delta(G)$, we have three possibilities.
- *If $\Delta(G - w_0) \leq 2$:* The connected graphs with maximum degree at most $2$ are paths and cycles. Paths and even cycles have $\chi \leq 2 \leq \Delta(G)$; odd cycles have $\chi = 3 \leq \Delta(G)$ (using $\Delta(G) \geq 3$). So $\chi(G - w_0) \leq \Delta(G)$.
- *If $\Delta(G - w_0) \geq 3$ and $G - w_0$ is not $K_{\Delta(G - w_0)+1}$ and not an odd cycle:* (An odd cycle has $\Delta = 2 < 3$, so this clause automatically holds.) $G - w_0$ is connected, smaller than $G$, and not complete: we verify non-completeness. $x, y \in V(G - w_0)$ and $xy \notin E(G)$ (shown above), so $x, y$ are non-adjacent in $G - w_0$, hence $G - w_0 \neq K_{|G - w_0|}$; and $K_{\Delta(G - w_0)+1}$ on $|G - w_0| \geq \Delta(G - w_0) + 1$ vertices would require all pairs to be adjacent, ruled out by non-adjacent $x, y$. The inductive hypothesis gives $\chi(G - w_0) \leq \Delta(G - w_0) \leq \Delta(G)$.
- *If $\Delta(G - w_0) \geq 3$ and $G - w_0 = K_{\Delta(G - w_0)+1}$:* Impossible by the non-adjacent $x, y$ argument above.
In all sub-sub-cases we obtain a proper colouring $c': V(G - w_0) \to [t] = \{1, \ldots, \Delta(G)\}$. Extend $c'$ to a colouring $c$ of $G$ by assigning $w_0$ any colour in $[t] \setminus \{c'(x), c'(y)\}$. This set is nonempty: $|\{c'(x), c'(y)\}| \leq 2 \leq \Delta(G) - 1 < \Delta(G) = |[t]|$, using $\Delta(G) \geq 3$. The extension is a proper colouring of $G$ (the only new edges are $w_0 x$ and $w_0 y$, both respected by the choice). Hence $\chi(G) \leq \Delta(G)$, closing the $|C_2| = 1$ sub-case.
*Sub-case $|C_2| \geq 2$.* Now $C_2 \setminus \{y'\} \neq \varnothing$.
[claim:$\{x, y'\}$ is a $2$-separator of $G$]
[proof]
Consider $G - \{x, y'\}$. In this graph:
- $y$ is adjacent only to $N_G(y) \cap (C_1 \cup C_2) = (N_G(y) \cap C_1) \cup \{y'\}$ in $G$. With $y'$ removed, $y$'s neighbours are $N_G(y) \cap C_1$ — all in $C_1$.
- For any $w \in C_2 \setminus \{y'\}$, the neighbours of $w$ in $G - \{x, y'\}$ are $N_G(w) \cap (C_2 \setminus \{y'\})$. In particular $w$ has no neighbour in $C_1 \cup \{y\}$: vertices of $C_2$ are not adjacent to vertices of $C_1$ in $G$ (since $C_1, C_2$ are distinct components of $G - \{x, y\}$), and $|N_G(y) \cap C_2| = 1$ with the unique neighbour being $y'$, so $w \neq y'$ is not adjacent to $y$.
Hence in $G - \{x, y'\}$, there is no edge between $C_1 \cup \{y\}$ and $C_2 \setminus \{y'\}$. Both sets are nonempty (the first contains $y$; the second is nonempty since $|C_2| \geq 2$). So $\{x, y'\}$ disconnects $G$. Since $|\{x, y'\}| = 2$ and $\kappa(G) = 2$, $\{x, y'\}$ is a $2$-separator.
[/proof]
[/claim]
*Degree count in the new pieces.* Write $C_2' := C_2 \setminus \{y'\}$ and $D := C_1 \cup \{y\}$. Define the new pieces
\begin{align*}
G_1' &:= G[D \cup \{x, y'\}] + xy' = G[C_1 \cup \{x, y, y'\}] + xy', \\
G_2' &:= G[C_2' \cup \{x, y'\}] + xy'.
\end{align*}
(Both pieces include the added edge $xy'$ regardless of whether it is in $E(G)$.) By the same argument as for $G_i$ in the original decomposition, $G_1', G_2'$ are connected and strictly smaller than $G$.
[claim:$\delta(G_1') < \Delta(G)$]
[proof]
Consider the vertex $y' \in V(G_1')$. Its neighbours in $G_1'$ come from:
- $N_G(y') \cap V(G_1') = N_G(y') \cap (C_1 \cup \{x, y, y'\}) \setminus \{y'\}$. Now $N_G(y') \subseteq C_2 \cup \{x, y\}$ (since $y' \in C_2$ and $C_1, C_2$ are disjoint components of $G - S$, so $y'$ is not adjacent to any vertex of $C_1$; and $N_G(y') \cap S \subseteq \{x, y\}$). So $N_G(y') \cap V(G_1') \subseteq \{x, y\}$, and specifically equals $\{y\}$ (since $y' \sim y$ by definition of $y'$) plus possibly $\{x\}$ if $xy' \in E(G)$.
- Additionally, $y'$ is adjacent to $x$ in $G_1'$ via the added edge $xy'$.
So $N_{G_1'}(y') \subseteq \{x, y\}$, hence $\deg_{G_1'}(y') \leq 2$. Since $\Delta(G) \geq 3$, we have $\deg_{G_1'}(y') \leq 2 < \Delta(G)$, so $\delta(G_1') \leq 2 < \Delta(G)$.
[/proof]
[/claim]
[claim:$\delta(G_2') < \Delta(G)$]
[proof]
Consider the vertex $y'$ in $G_2'$. Its neighbours in $G_2'$ come from:
- $N_G(y') \cap V(G_2') = N_G(y') \cap (C_2' \cup \{x, y'\}) \setminus \{y'\} = (N_G(y') \cap C_2') \cup (N_G(y') \cap \{x\})$. Note $y' \sim y$ in $G$ but $y \notin V(G_2')$, so $y$ does not contribute.
- The added edge $xy'$: $y'$ gains $x$ as a neighbour.
So $N_{G_2'}(y') = (N_G(y') \cap C_2') \cup \{x\}$. Hence
\begin{align*}
\deg_{G_2'}(y') = |N_G(y') \cap C_2'| + 1 = |N_G(y') \cap (C_2 \setminus \{y'\})| + 1 = |N_G(y') \cap C_2| + 1
\end{align*}
(the last equality since $y' \notin N_G(y')$ — a vertex is not its own neighbour). Compute $|N_G(y') \cap C_2|$: the total degree of $y'$ in $G$ is
\begin{align*}
\deg_G(y') = |N_G(y') \cap C_2| + |N_G(y') \cap \{x, y\}| \leq \Delta(G).
\end{align*}
We know $y \in N_G(y')$ (so $|N_G(y') \cap \{x, y\}| \geq 1$). Hence $|N_G(y') \cap C_2| \leq \Delta(G) - 1$, and
\begin{align*}
\deg_{G_2'}(y') = |N_G(y') \cap C_2| + 1 \leq \Delta(G).
\end{align*}
We need strict inequality. We split on whether $x \in N_G(y')$.
- *If $x \in N_G(y')$ (i.e., $xy' \in E(G)$):* Then $|N_G(y') \cap \{x, y\}| = 2$, so $|N_G(y') \cap C_2| \leq \Delta(G) - 2$, giving $\deg_{G_2'}(y') \leq \Delta(G) - 1 < \Delta(G)$.
- *If $x \notin N_G(y')$ (i.e., $xy' \notin E(G)$):* Then $|N_G(y') \cap \{x, y\}| = 1$, so $\deg_G(y') = |N_G(y') \cap C_2| + 1$. If $\deg_G(y') = \Delta(G)$, then $|N_G(y') \cap C_2| = \Delta(G) - 1$. But here is the key: we chose $y'$ as the *unique* neighbour of $y$ in $C_2$, with $|N_G(y) \cap C_2| = 1$. Now consider the degree of $y'$ in $G$: $y'$ is adjacent to $y$ and to $\Delta(G) - 1$ vertices of $C_2$. In $G_2'$, $y'$ is adjacent to these $\Delta(G) - 1$ vertices of $C_2 \setminus \{y'\} = C_2'$ plus $x$ (via the added edge), giving $\deg_{G_2'}(y') = \Delta(G)$. So if $\deg_G(y') = \Delta(G)$, then $\deg_{G_2'}(y') = \Delta(G)$, not strict.
In the second sub-sub-case we need a different witness. Consider the vertex $x$ in $G_2'$. Its neighbours in $G_2'$ come from:
\begin{align*}
N_{G_2'}(x) = (N_G(x) \cap C_2') \cup \{y'\}.
\end{align*}
We know $|N_G(x) \cap C_2| = 1$ (the unique neighbour being $x'$). If $x' \neq y'$, then $x' \in C_2' = C_2 \setminus \{y'\}$, so $|N_G(x) \cap C_2'| = 1$ and $\deg_{G_2'}(x) = 1 + 1 = 2 < \Delta(G)$ (using $\Delta(G) \geq 3$). If $x' = y'$, then $N_G(x) \cap C_2' = \varnothing$, and $\deg_{G_2'}(x) = 0 + 1 = 1 < \Delta(G)$. Either way, $\deg_{G_2'}(x) \leq 2 < \Delta(G)$, so $\delta(G_2') \leq 2 < \Delta(G)$.
In all sub-sub-cases $\delta(G_2') < \Delta(G)$.
[/proof]
[/claim]
*Applying the generic sub-case to $\{x, y'\}$.* Both $G_1'$ and $G_2'$ have $\delta < \Delta(G)$, so the generic sub-case's argument — with $\{x, y'\}$ playing the role of $\{x, y\}$ and $G_1', G_2'$ the pieces — produces a proper $\Delta(G)$-colouring of $G$. Explicitly: colour each $G_i'$ greedily from its minimum-degree vertex (starting the BFS there and reversing) using at most $\Delta(G)$ colours; the added edge $xy' \in E(G_i')$ forces $c_i(x) \neq c_i(y')$; permute palettes so all $c_i$ agree on $(x, y')$; glue.
Hence $\chi(G) \leq \Delta(G)$.[/step]