[guided]We are proving the induction step for a fixed integer $k$ with $1\leq k\leq r$. Define the knot set by $\mathcal{K}:=\{t_j:0\leq j\leq M\}$. The induction hypothesis says that
\begin{align*}
\sum_{j=0}^{M-k} N_{j,k-1}(y)=1
\end{align*}
for every $y\in [t_{k-1},t_{M-k+1})\setminus\mathcal{K}$. We fix $x\in [t_k,t_{M-k})\setminus\mathcal{K}$ and must prove
\begin{align*}
\sum_{i=0}^{M-k-1}N_{i,k}(x)=1.
\end{align*}
The induction step is driven by one bookkeeping move: after expanding every degree-$k$ B-spline, we collect the coefficients of each degree-$(k-1)$ B-spline and then invoke the displayed induction hypothesis at the chosen point $x$.
For $0 \leq i \leq M-k-1$, the degree-$k$ B-spline is the map $N_{i,k}:\mathbb{R}\to\mathbb{R}$ defined by the recursive formula specified in the theorem statement:
\begin{align*}
N_{i,k}(x)
=
\frac{x-t_i}{t_{i+k}-t_i}N_{i,k-1}(x)
+
\frac{t_{i+k+1}-x}{t_{i+k+1}-t_{i+1}}N_{i+1,k-1}(x).
\end{align*}
As in the exact proof, every zero-denominator term is interpreted as zero.
The first term already involves $N_{i,k-1}$. The second term involves $N_{i+1,k-1}$, so we reindex it by defining $j=i+1$. As $i$ runs from $0$ to $M-k-1$, the new index $j$ runs from $1$ to $M-k$. Therefore
\begin{align*}
\sum_{i=0}^{M-k-1}
\frac{t_{i+k+1}-x}{t_{i+k+1}-t_{i+1}}N_{i+1,k-1}(x)
=
\sum_{j=1}^{M-k}
\frac{t_{j+k}-x}{t_{j+k}-t_j}N_{j,k-1}(x).
\end{align*}
Combining this with the first sum gives
\begin{align*}
\sum_{i=0}^{M-k-1}N_{i,k}(x)
=
\sum_{j=0}^{M-k-1}
\frac{x-t_j}{t_{j+k}-t_j}N_{j,k-1}(x)
+
\sum_{j=1}^{M-k}
\frac{t_{j+k}-x}{t_{j+k}-t_j}N_{j,k-1}(x).
\end{align*}
This formula separates the boundary degree-$(k-1)$ splines, indexed by $j=0$ and $j=M-k$, from the interior degree-$(k-1)$ splines, indexed by $1 \leq j \leq M-k-1$. We need to know where a degree-$(k-1)$ spline can be nonzero. For any function $f: \mathbb{R}\to \mathbb{R}$, $\operatorname{supp} f$ denotes the closure in $\mathbb{R}$ of $\{y\in\mathbb{R}:f(y)\neq 0\}$. We prove the support containment needed here. For every degree $m$ with $0\leq m\leq r$ and every admissible index $j$, we claim that
\begin{align*}
\operatorname{supp} N_{j,m}\subset [t_j,t_{j+m+1}].
\end{align*}
When $m=0$, the definition gives $N_{j,0}=\mathbb{1}_{[t_j,t_{j+1})}$, so the set where $N_{j,0}$ is nonzero is contained in $[t_j,t_{j+1})$, and its closure in $\mathbb{R}$ is contained in $[t_j,t_{j+1}]$.
Now assume the containment holds at degree $m-1$, where $1\leq m\leq r$. The recursive formula expresses $N_{j,m}$ as the sum of one coefficient times $N_{j,m-1}$ and one coefficient times $N_{j+1,m-1}$, with every zero-denominator term interpreted as the zero function. Hence $N_{j,m}(y)$ can be nonzero only if $N_{j,m-1}(y)\neq 0$ or $N_{j+1,m-1}(y)\neq 0$. By the induction hypothesis,
\begin{align*}
\operatorname{supp} N_{j,m-1}\subset [t_j,t_{j+m}]
\end{align*}
and
\begin{align*}
\operatorname{supp} N_{j+1,m-1}\subset [t_{j+1},t_{j+m+1}].
\end{align*}
Because the knot vector is nondecreasing, both intervals are contained in $[t_j,t_{j+m+1}]$. Taking closures therefore gives
\begin{align*}
\operatorname{supp} N_{j,m}\subset [t_j,t_{j+m+1}].
\end{align*}
Applying this with $m=k-1$ gives
\begin{align*}
\operatorname{supp} N_{j,k-1}\subset [t_j,t_{j+k}].
\end{align*}
For $j=0$, this gives $\operatorname{supp} N_{0,k-1}\subset [t_0,t_k]$. Since $x\in [t_k,t_{M-k})\setminus \mathcal{K}$, we have $x>t_k$ or else $x=t_k\in\mathcal{K}$, which is excluded. Therefore $x\notin \operatorname{supp}N_{0,k-1}$ and $N_{0,k-1}(x)=0$. For $j=M-k$, the containment gives $\operatorname{supp} N_{M-k,k-1}\subset [t_{M-k},t_M]$, while $x<t_{M-k}$, so $N_{M-k,k-1}(x)=0$.
Thus only the interior indices remain. If $1\leq j\leq M-k-1$ and $t_{j+k}>t_j$, the collected coefficient of $N_{j,k-1}(x)$ is
\begin{align*}
\frac{x-t_j}{t_{j+k}-t_j}+\frac{t_{j+k}-x}{t_{j+k}-t_j}=1.
\end{align*}
If $t_{j+k}=t_j$, then the support containment gives $\operatorname{supp}N_{j,k-1}\subset \{t_j\}$. Because $x\notin \mathcal{K}$ and $t_j\in\mathcal{K}$, we have $x\neq t_j$, hence $N_{j,k-1}(x)=0$. In this collapsed-support case the two zero-denominator terms contribute $0$, which equals $N_{j,k-1}(x)$ at the chosen $x$.
Consequently
\begin{align*}
\sum_{i=0}^{M-k-1}N_{i,k}(x)
=
\sum_{j=1}^{M-k-1}N_{j,k-1}(x).
\end{align*}
The two omitted boundary terms have just been shown to vanish at the chosen $x$, so this equals
\begin{align*}
\sum_{j=0}^{M-k}N_{j,k-1}(x).
\end{align*}
Finally, $x \in [t_k,t_{M-k})\setminus\mathcal{K}\subset [t_{k-1},t_{M-k+1})\setminus\mathcal{K}$, so the induction hypothesis applies and gives
\begin{align*}
\sum_{j=0}^{M-k}N_{j,k-1}(x)=1.
\end{align*}
Therefore $\sum_{i=0}^{M-k-1}N_{i,k}(x)=1$.[/guided]