[guided]The purpose of this step is to turn a yes-or-no satisfiability test into actual bits of a satisfying assignment. After the first oracle query, we are in the case where $\varphi$ is satisfiable, so there exists at least one map $a:V(\varphi)\to\{0,1\}$ with $\varphi(a)=1$. We do not know this map, but we can discover it one coordinate at a time.
Define $\varphi_0:=\varphi$. For each integer $i$ with $0\leq i\leq n$, define a partial assignment $a_i:\{x_1,\dots,x_i\}\to\{0,1\}$, and let $\varphi_i$ be the formula obtained from $\varphi$ after substituting the chosen values for $x_1,\dots,x_i$. The invariant we maintain is:
\begin{align*}
\varphi_i \text{ is satisfiable as a formula in the unassigned variables } x_{i+1},\dots,x_n.
\end{align*}
For $i=0$, this is exactly the first oracle answer yes, because $\varphi_0=\varphi$.
Now assume $0\leq i<n$ and the invariant holds for $\varphi_i$. We test whether we can safely set the next variable to $0$. Let $\psi_{i,0}$ denote the formula obtained from $\varphi_i$ by substituting $x_{i+1}=0$, and query the $\operatorname{SAT}$ oracle on $\psi_{i,0}$. If the oracle returns yes, then $\psi_{i,0}$ is satisfiable, so we set $a_{i+1}(x_{i+1})=0$ and define $\varphi_{i+1}:=\psi_{i,0}$. The invariant remains true.
If the oracle returns no, then no satisfying assignment of $\varphi_i$ can have $x_{i+1}=0$. But the inductive hypothesis says that $\varphi_i$ is satisfiable. Therefore some satisfying assignment of $\varphi_i$ exists, and since every Boolean assignment gives $x_{i+1}$ either value $0$ or value $1$, such an assignment must give $x_{i+1}=1$. Let $\psi_{i,1}$ denote the formula obtained from $\varphi_i$ by substituting $x_{i+1}=1$. The preceding sentence proves that $\psi_{i,1}$ is satisfiable. Thus we set $a_{i+1}(x_{i+1})=1$ and define $\varphi_{i+1}:=\psi_{i,1}$.
In both cases, after assigning $x_{i+1}$, the new restricted formula remains satisfiable. This proves the invariant by induction for all $i=0,\dots,n$.[/guided]