[guided]We begin from the Fourier condition and want to build a pseudodifferential operator that sees only the regular part of $u$ near the covector $\xi_0$. The spatial cutoff $\chi$ is already part of condition 1, and the hypothesis says that the compactly supported distribution $\chi u$ has a Fourier transform that decays faster than every power of $|\xi|$ in a cone around $\xi_0$.
Choose $\rho \in C_c^\infty(\mathbb{R}^n)$ with $\rho(x_0)\neq 0$ and with support contained in the set where $\chi$ is nonzero. This support condition matters because it lets us divide by $\chi$ on the support of $\rho$. Define
\begin{align*}
\beta: \mathbb{R}^n \to \mathbb{C}, \qquad \beta(x) := \rho(x)/\chi(x)
\end{align*}
on $\operatorname{supp}\rho$ and extend $\beta$ smoothly by $0$ outside a compact subset of the set where $\chi$ is nonzero. Then $\beta\chi=\rho$ on $\mathbb{R}^n$. Choose also a conic frequency cutoff $\psi \in C^\infty(\mathbb{R}^n \setminus \{0\})$, homogeneous of degree $0$ for $|\xi|\geq 1$, such that $\psi(\xi_0)\neq 0$ and the conic support of $\psi$ for large $|\xi|$ lies inside the cone $\Gamma_1$ where $\widehat{\chi u}$ decays rapidly. After smoothing $\psi$ near $\xi=0$, define the symbol map
\begin{align*}
a: \mathbb{R}^n \times \mathbb{R}^n \to \mathbb{C}, \qquad (x,\xi) \mapsto \beta(x)\psi(\xi).
\end{align*}
The symbol $a$ belongs to $S^0(\mathbb{R}^n \times \mathbb{R}^n)$ because $\beta$ is compactly supported and, for every multi-index $\alpha \in \mathbb{N}_0^n$, the derivatives $\partial_\xi^\alpha \psi$ satisfy the order-zero symbol estimate. To make the operator act only on the localized distribution, define the multiplication map
\begin{align*}
M_\chi: \mathcal{D}'(\mathbb{R}^n) \to \mathcal{E}'(\mathbb{R}^n), \qquad v \mapsto \chi v
\end{align*}
where $\mathcal{E}'(\mathbb{R}^n)$ is the space of compactly supported distributions, and set $A:=\operatorname{Op}(a)\circ M_\chi$. Since multiplication by a smooth compactly supported function is a properly supported order-zero pseudodifferential operator and principal symbols multiply under composition, $A$ remains in $\Psi^0(\mathbb{R}^n)$ and its principal symbol satisfies
\begin{align*}
\sigma_0(A)(x_0,\xi_0)=\beta(x_0)\psi(\xi_0)\chi(x_0)=\rho(x_0)\psi(\xi_0)\neq 0.
\end{align*}
Thus $A$ is elliptic at $(x_0,\xi_0)$.
It remains to check smoothness of $Au$. The compact support of $\chi u$ implies that $\widehat{\chi u}$ is smooth and grows at most polynomially. The standard properly supported quantization agrees, on compact spatial supports and modulo a smoothing operator, with the corresponding Kohn-Nirenberg oscillatory formula. The smoothing error already sends distributions to smooth functions, so we only need to estimate the oscillatory representative.
We split the frequency integral into two regions. On $|\xi|\leq 2$, the frequency domain is compact, so differentiating in $x$ produces a compactly supported smooth amplitude and hence a smooth contribution. On the large-frequency part of the support of $\psi$, the support condition for $\psi$ places $\xi$ inside $\Gamma_1$, and the hypothesis gives rapid decay: for every $N \in \mathbb{N}$ there exists $C_N>0$ such that
\begin{align*}
|\widehat{\chi u}(\xi)| \leq C_N(1+|\xi|)^{-N}
\end{align*}
for all such $\xi$. Let $\alpha\in\mathbb{N}_0^n$ be a spatial multi-index and write $k=|\alpha|$. After applying $\partial_x^\alpha$, the differentiated oscillatory integrand is bounded by a constant times $(1+|\xi|)^k|\widehat{\chi u}(\xi)|$ on the high-frequency region, because $a$ is an order-zero symbol and the exponential contributes at most $k$ powers of $\xi$. Choose $N>k+n$. Then the integrand is bounded by a constant times $(1+|\xi|)^{k-N}$, which is integrable over $\mathbb{R}^n$ with respect to $\mathcal{L}^n$. Dominated convergence therefore justifies differentiating under the integral and proves that $\partial_x^\alpha Au$ is continuous. Since $\alpha$ was arbitrary, $Au\in C^\infty(\mathbb{R}^n)$. Thus the Fourier decay condition produces an elliptic properly supported order-zero cutoff with smooth output.[/guided]