[guided]The strategy. Extract polynomial moments of $x^j$ and $y^j$ from the signature equality, by selecting a specific family of multi-indices designed to interact nicely with the normalisation $x^1_t = t$ from Step 1. The chosen family is $w = (1, 1, \dots, 1, j)$ with $k+1$ leading $1$s and a single $j$ at the end, giving a multi-index of length $k+2$.
Why this family? Because integrating against $dx^1$ is integrating against $dt$ (since $x^1_t = t$), which produces polynomial pre-factors. Iterating this $k+1$ times produces a factorial of $t$, i.e., a single monomial up to a combinatorial constant. The final integration against $dx^j$ then converts the polynomial pre-factor into a moment of the path $x^j$.
Computing the prefix. By definition of the iterated integral and the identity $dx^1_t = dt = d\mathcal{L}^1(t)$ on $[a,b]$,
\begin{align*}
S(x)^{(1, \dots, 1)}_{[a, t]} = \int_{a < s_1 < \cdots < s_{k+1} < t} d\mathcal{L}^1(s_1) \cdots d\mathcal{L}^1(s_{k+1}) = \mathcal{L}^{k+1}(\Delta_{k+1}^{[a, t]}),
\end{align*}
where the multi-index $(1, \dots, 1)$ has length $k+1$ and $\Delta_{k+1}^{[a,t]} := \{(s_1, \dots, s_{k+1}) \in [a,t]^{k+1} : a < s_1 < \cdots < s_{k+1} < t\}$ is the standard ordered simplex.
The simplex volume. The cube $[a, t]^{k+1}$ decomposes (up to a measure-zero set of coincident coordinates) into $(k+1)!$ congruent simplices, one for each permutation $\pi \in S_{k+1}$ — the simplex for $\pi$ is $\{s_{\pi(1)} < s_{\pi(2)} < \cdots < s_{\pi(k+1)}\}$. By symmetry under permutation of coordinates (Lebesgue measure on $\mathbb{R}^{k+1}$ is invariant under coordinate permutations), all these simplices have the same Lebesgue measure, so
\begin{align*}
\mathcal{L}^{k+1}(\Delta_{k+1}^{[a, t]}) = \frac{\mathcal{L}^{k+1}([a,t]^{k+1})}{(k+1)!} = \frac{(t - a)^{k+1}}{(k+1)!}.
\end{align*}
This is the same calculation underlying [Factorial Decay](/theorems/2493).
Substituting back,
\begin{align*}
S(x)^{(1, \dots, 1)}_{[a, t]} = \frac{(t - a)^{k+1}}{(k+1)!}.
\end{align*}
Computing the full multi-index. Now integrate the prefix against $dx^j$ in the outermost integral:
\begin{align*}
S(x)^{(1, \dots, 1, j)}_{[a, b]} = \int_a^b S(x)^{(1, \dots, 1)}_{[a, t]} \, dx^j_t = \frac{1}{(k+1)!} \int_a^b (t - a)^{k+1} \, dx^j_t.
\end{align*}
The same calculation for $y$ gives the analogous expression with $y^j$ in place of $x^j$.
Extracting moment equality. The hypothesis $S(x) = S(y)$ in $T((V))$ implies coordinate-wise equality, in particular for the multi-index $w = (1, \dots, 1, j)$:
\begin{align*}
\int_a^b (t - a)^{k+1} \, dx^j_t = \int_a^b (t - a)^{k+1} \, dy^j_t \qquad \forall k \ge 0, \ j \in \{1, \dots, d\}.
\end{align*}
From shifted moments to ordinary moments. Expand $(t - a)^{k+1}$ in the standard monomial basis:
\begin{align*}
(t - a)^{k+1} = \sum_{m=0}^{k+1} \binom{k+1}{m} t^m (-a)^{k+1-m}.
\end{align*}
By linearity of Stieltjes integration in the integrand, equality of $\int (t-a)^{k+1} \, dx^j$ and $\int (t-a)^{k+1} \, dy^j$ for all $k \ge 0$ is equivalent to equality of $\int t^m \, dx^j$ and $\int t^m \, dy^j$ for all $m \ge 0$ (a triangular linear system in the indices $k, m$, hence invertible).
Concretely: for $k = 0$, we have $\int 1 \, dx^j = \int 1 \, dy^j$, i.e., $x^j_b - x^j_a = y^j_b - y^j_a$. For $k = 1$, expanding gives an equation involving $\int t \, dx^j$ and $\int 1 \, dx^j$; using the $k=0$ equation we extract $\int t \, dx^j = \int t \, dy^j$. By induction on $k$ we extract every monomial moment:
\begin{align*}
\int_a^b t^m \, dx^j_t = \int_a^b t^m \, dy^j_t \qquad \forall m \ge 0, \ j \in \{1, \dots, d\}.
\end{align*}
This is the moment equality we will exploit in Step 3 to reduce to an $L^2$-orthogonality statement about $x^j - y^j$ as a function of $t$.
Why this works only when $\rho$ is a coordinate. The moment construction relies critically on $x^1_t = t$. If no coordinate of $x$ were strictly monotone, no analogous moment computation would be available — and indeed, without time augmentation, the signature is not injective even on smooth paths (a famous example: the figure-eight loop traversed forwards and backwards has zero signature at every level $\ge 1$ but is not the constant path).[/guided]