[guided]Fix flats $H,F \in L(M)$ with $H \leq F$. The interval from $H$ to $F$ is the finite set
\begin{align*}
[H,F] := \{G \in L(M) : H \leq G \leq F\}.
\end{align*}
We want to compute the coefficient that will later appear in front of $f(H)$, namely
\begin{align*}
\sum_{G \in [H,F]} \mu(G,F).
\end{align*}
There are two cases. If $H=F$, then the interval contains only $F$, and the defining normalization of the Möbius function gives $\mu(F,F)=1$. Therefore
\begin{align*}
\sum_{G \in [F,F]} \mu(G,F)=\mu(F,F)=1.
\end{align*}
Now assume $H<F$. By the definition of the Möbius function of a finite poset, we use the right-sided defining recursion on the interval $[H,F]$:
\begin{align*}
\mu(H,F)=-\sum_{G \in [H,F]\setminus\{H\}} \mu(G,F).
\end{align*}
This formula is exactly the statement that the Möbius function cancels the constant zeta function on every nontrivial interval. Substituting this expression for $\mu(H,F)$ into the full interval sum gives
\begin{align*}
\sum_{G \in [H,F]} \mu(G,F)=\mu(H,F)+\sum_{G \in [H,F]\setminus\{H\}} \mu(G,F).
\end{align*}
Using the recursion, the right-hand side becomes
\begin{align*}
-\sum_{G \in [H,F]\setminus\{H\}} \mu(G,F)+\sum_{G \in [H,F]\setminus\{H\}} \mu(G,F)=0.
\end{align*}
Hence the interval sum equals $1$ when $H=F$ and equals $0$ when $H<F$. This is the cancellation identity that will remove every term except $f(F)$ in the final sum.[/guided]