[step:Case 1 — $\rho$ and $\rho'$ non-isomorphic: every averaged operator vanishes]Suppose $\rho \not\cong \rho'$ as $G$-representations.
By Step 2, $\widetilde{\varphi}: V \to V'$ is a $G$-homomorphism for every linear $\varphi$. Apply [Schur's Lemma](/theorems/2414): a $G$-homomorphism between non-isomorphic irreducibles is zero. We verify the hypotheses: $\rho$ and $\rho'$ are both irreducible (by assumption), and they are not isomorphic (the case assumption). Hence $\widetilde{\varphi} = 0$ for every $\varphi$.
In particular, choosing $\varphi = \varepsilon_{\alpha\beta}$ (so $\Phi = E_{\alpha\beta}$) for each $\alpha \in \{1, \ldots, n'\}$ and $\beta \in \{1, \ldots, n\}$, the matrix $\widetilde{E}_{\alpha\beta} = 0$, so every entry vanishes:
\begin{align*}
\frac{1}{|G|} \sum_{g \in G} R'(g^{-1})_{i\alpha}\, R(g)_{\beta j} = 0 \quad \text{for all } i, j, \alpha, \beta.
\end{align*}
Now compute $\langle \chi', \chi \rangle$ from Step 1. Setting $\alpha = i$ and $\beta = j$ in the vanishing identity (legal because $i, \alpha$ range over $\{1, \ldots, n'\}$ and $j, \beta$ range over $\{1, \ldots, n\}$):
\begin{align*}
\frac{1}{|G|} \sum_{g \in G} R'(g^{-1})_{ii}\, R(g)_{jj} = 0 \quad \text{for all } i, j.
\end{align*}
Sum over $i$ and $j$:
\begin{align*}
\langle \chi', \chi \rangle = \sum_{i=1}^{n'} \sum_{j=1}^n \frac{1}{|G|} \sum_{g \in G} R'(g^{-1})_{ii}\, R(g)_{jj} = \sum_{i,j} 0 = 0.
\end{align*}
Equivalently, $\langle \chi, \chi' \rangle = \overline{\langle \chi', \chi \rangle} = 0$ (the conjugate of $0$).[/step]