[step:Apply the pullback wave front estimate to obtain the stated inclusion]
The pullback wave front estimate gives
\begin{align*}
\operatorname{WF}(\Delta^*(u\otimes v))\subset \{(x,d\Delta_x^\top(\xi,\eta)):(x,x;\xi,\eta)\in \operatorname{WF}(u\otimes v),\ d\Delta_x^\top(\xi,\eta)\neq 0\}.
\end{align*}
Here $d\Delta_x^\top:T_x^*X\oplus T_x^*X\to T_x^*X$ is the transpose map characterized by
\begin{align*}
d\Delta_x^\top(\xi,\eta)(h)=(\xi,\eta)(d\Delta_x(h))\quad\text{for every }h\in T_xX.
\end{align*}
Since $d\Delta_x(h)=(h,h)$, we have
\begin{align*}
d\Delta_x^\top(\xi,\eta)=\xi+\eta.
\end{align*}
Using $\operatorname{WF}(u\otimes v)\subset S$, the three pieces of $S$ give the three pieces of the desired upper bound. From $S_{11}$ we obtain covectors of the form
\begin{align*}
(x,\xi+\eta)\quad\text{with}\quad (x,\xi)\in \operatorname{WF}(u),\ (x,\eta)\in \operatorname{WF}(v).
\end{align*}
From $S_{10}$ we obtain covectors of the form $(x,\xi)$ with $(x,\xi)\in \operatorname{WF}(u)$, because $d\Delta_x^\top(\xi,0)=\xi$. From $S_{01}$ we obtain covectors of the form $(x,\eta)$ with $(x,\eta)\in \operatorname{WF}(v)$, because $d\Delta_x^\top(0,\eta)=\eta$. Terms for which $\xi+\eta=0$ contribute no point to the wave front set, since wave front sets lie in the punctured cotangent bundle. Therefore
\begin{align*}
\operatorname{WF}(uv)\subset \operatorname{WF}(u)\cup \operatorname{WF}(v)\cup \{(x,\xi+\eta)\in T^*X\setminus 0:(x,\xi)\in \operatorname{WF}(u),\ (x,\eta)\in \operatorname{WF}(v)\}.
\end{align*}
This is the claimed wave front set inclusion, and the proof is complete.
[/step]