[step:Prove transitivity, one-step inclusion, and rank bounds simultaneously]We prove by transfinite induction on an ordinal $\alpha$ the following three assertions:
\begin{align*}
\mathrm{T}(\alpha)&:\quad \text{if }x \in y\in V_\alpha,\text{ then }x\in V_\alpha,\\
\mathrm{I}(\alpha)&:\quad V_\alpha \subset V_{\alpha+1},\\
\mathrm{R}(\alpha)&:\quad \text{if }x\in V_\alpha,\text{ then there exists }\gamma\in\alpha\text{ such that }x\subset V_\gamma.
\end{align*}
For $\alpha=0$, the assertions $\mathrm{T}(0)$ and $\mathrm{R}(0)$ are vacuous because $V_0=\varnothing$. Also $V_0=\varnothing\subset \mathcal{P}(\varnothing)=V_1$, so $\mathrm{I}(0)$ holds.
Now suppose $\alpha=\delta+1$ and that $\mathrm{T}(\delta)$, $\mathrm{I}(\delta)$, and $\mathrm{R}(\delta)$ hold. If $y\in V_{\delta+1}$, then $y\in \mathcal{P}(V_\delta)$, so $y\subset V_\delta$. Hence, whenever $x\in y$, we have $x\in V_\delta$. By $\mathrm{I}(\delta)$, $V_\delta\subset V_{\delta+1}$, and therefore $x\in V_{\delta+1}$. This proves $\mathrm{T}(\delta+1)$.
If $x\in V_{\delta+1}$, then $x\subset V_\delta$. Since $\delta\in\delta+1$, this proves $\mathrm{R}(\delta+1)$. To prove $\mathrm{I}(\delta+1)$, let $x\in V_{\delta+1}$. The preceding sentence gives $x\subset V_\delta$. By $\mathrm{I}(\delta)$, $V_\delta\subset V_{\delta+1}$, hence $x\subset V_{\delta+1}$. Therefore $x\in \mathcal{P}(V_{\delta+1})=V_{\delta+2}$.
Finally suppose $\lambda$ is a limit ordinal and that $\mathrm{T}(\delta)$, $\mathrm{I}(\delta)$, and $\mathrm{R}(\delta)$ hold for every $\delta\in\lambda$. Let $y\in V_\lambda$. By definition of $V_\lambda$, there exists $\delta\in\lambda$ such that $y\in V_\delta$. If $x\in y$, then $\mathrm{T}(\delta)$ gives $x\in V_\delta$. Since $\delta\in\lambda$, we have $V_\delta\subset \bigcup_{\eta\in\lambda}V_\eta=V_\lambda$ by the definition of union. Thus $x\in V_\lambda$, proving $\mathrm{T}(\lambda)$.
To prove $\mathrm{I}(\lambda)$, let $x\in V_\lambda$. Then $x\in V_\delta$ for some $\delta\in\lambda$. If $z\in x$, then $\mathrm{T}(\delta)$ gives $z\in V_\delta$, and hence $z\in V_\lambda$. Thus $x\subset V_\lambda$, so $x\in \mathcal{P}(V_\lambda)=V_{\lambda+1}$.
To prove $\mathrm{R}(\lambda)$, let $x\in V_\lambda$. Choose $\delta\in\lambda$ such that $x\in V_\delta$. Since $V_0=\varnothing$, this $\delta$ is not $0$. Applying $\mathrm{R}(\delta)$, there exists $\gamma\in\delta$ such that $x\subset V_\gamma$. Because $\gamma\in\delta\in\lambda$ and $\lambda$ is transitive as an ordinal, $\gamma\in\lambda$. Therefore $x\subset V_\gamma$ for some $\gamma\in\lambda$.
By transfinite induction, $\mathrm{T}(\alpha)$, $\mathrm{I}(\alpha)$, and $\mathrm{R}(\alpha)$ hold for every ordinal $\alpha$.[/step]