[guided]We have reduced to showing that for each $n$, the map $\pi_n \circ \psi: T_1((V)) \to V^{\otimes n}$ is continuous. The structure is:
\begin{align*}
T_1((V)) \xrightarrow{\;a \mapsto (\pi_1(b), \ldots, \pi_n(b))\;} \prod_{j=1}^{n} V^{\otimes j} \xrightarrow{\;F_n\;} V^{\otimes n},
\end{align*}
where $b = a - \mathbf{1}$, the first arrow is continuous by the product-topology definition, and $F_n$ is an explicit polynomial in tensor coordinates.
**What is $F_n$?** Substituting $\pi_n(b^{\otimes k}) = \sum \pi_{i_1}(b) \otimes \cdots \otimes \pi_{i_k}(b)$ (sum over compositions of $n$ into $k$ positive parts) into Step 4's formula,
\begin{align*}
F_n(\beta_1, \ldots, \beta_n) := \sum_{k=0}^{n} (-1)^k \sum_{\substack{i_1 + \cdots + i_k = n \\ i_j \ge 1}} \beta_{i_1} \otimes \beta_{i_2} \otimes \cdots \otimes \beta_{i_k},
\end{align*}
where $\beta_j$ stands for the level-$j$ component (the $k = 0$ term contributes $\pi_n(\mathbf{1})$, which is $0$ unless $n = 0$, in which case it is $1 \in V^{\otimes 0} = \mathbb{R}$). Each interior sum is a finite collection of $k$-linear maps from $V^{\otimes i_1} \times \cdots \times V^{\otimes i_k}$ to $V^{\otimes n}$.
**Why are these multilinear maps continuous?** Multilinear maps on finite-dimensional vector spaces are continuous. To see this, fix bases of each $V^{\otimes i_j}$ and write the multilinear map as a polynomial in the coordinates with values in coordinates of $V^{\otimes n}$; polynomials in finitely many real variables are continuous. (Equivalently: any norm makes each $V^{\otimes i_j}$ a finite-dimensional normed space, and multilinear maps are bounded with respect to the product norm, hence continuous.)
**Why is the sign tracking unambiguous?** Each summand is $(-b)^{\otimes k}$ projected to level $n$, which expands as $(-1)^k$ times the convolution sum of level components of $b$. The factor $(-1)^k$ is uniform across the entire $k$-th sum — it depends only on the tensor-power index $k$, not on the individual composition $(i_1, \ldots, i_k)$. Compositions with any $i_j = 0$ are killed by $\pi_0(b) = 0$, so we restrict to compositions with all $i_j \ge 1$, which simply removes those terms; it does not change the sign of the surviving ones.
**Total $F_n$ is continuous.** $F_n$ is a finite sum (over $k = 0, 1, \ldots, n$ and over compositions of $n$ into $k$ positive parts, finitely many in total) of constant-multiplied multilinear maps between finite-dimensional spaces, hence continuous.
By the universal-property argument from Step 4, $\psi$ itself is continuous. The composition $S^{-1} \circ \psi \circ S$ is continuous, so inversion on $\mathcal{C}_p$ is continuous.[/guided]