[step:Replace the scalar equation microlocally by a diagonal first-order Cauchy system]
Define the unrescaled Cauchy vector map
\begin{align*}
\mathcal C:C^\infty(I_1\times Y)\to C^\infty(I_1\times Y)^m
\end{align*}
by
\begin{align*}
\mathcal C(u):=\bigl(u,\partial_tu,\dots,\partial_t^{m-1}u\bigr).
\end{align*}
The proper support of $P$ and $\Lambda$ lets all microlocal cutoffs be chosen properly supported on the second-countable Hausdorff manifold $I_1\times Y$. Let $v:=\mathcal C(u)$. After applying a microlocal elliptic parametrix for $a_m$ and using the identities $\partial_t v_j=v_{j+1}$ for $0\le j\le m-2$, the scalar equation $Pu=f$ is represented, modulo smoothing errors on the chosen conic set, by a first-order system
\begin{align*}
(D_t-A(t,y,D_y))v=F.
\end{align*}
Here $A(t,y,D_y)$ is an $m\times m$ properly supported tangential pseudodifferential matrix of order $1$, $F$ is the forcing vector with only the final component containing the microlocally normalized forcing, and the principal symbol $a_1(t,y,\eta)$ of $A$ has characteristic polynomial
\begin{align*}
\det(\tau I_m-a_1(t,y,\eta))=\prod_{\ell=1}^m(\tau-\lambda_\ell(t,y,\eta)).
\end{align*}
Because the roots are real, smooth, homogeneous of degree $1$, and pairwise distinct, the eigenprojectors of $a_1$ are smooth order-zero homogeneous matrix symbols on the shrunken conic set. Quantizing these eigenprojectors gives an elliptic order-zero matrix pseudodifferential operator $M$ such that
\begin{align*}
M^{-1}(D_t-A)M=D_t-\operatorname{diag}(B_1,\dots,B_m)+L_0
\end{align*}
microlocally, where each $B_\ell\in\Psi^1_{\mathrm{prop}}(Y)$ has principal symbol $\lambda_\ell$ and $L_0$ is an order-zero matrix operator absorbed into the transport equations. The rescaled companion map $U_\Lambda$ from the statement is related to this unrescaled system by the elliptic diagonal tangential operator with entries $\Lambda^{m-1-j}$ on the $j$th component, so using $\mathcal C$ here is exactly the unrescaled Cauchy convention used for the data $g_j$.
The diagonalizing matrix at $t=0$ for the unrescaled trace vector is the microlocal Vandermonde matrix $\mathcal V:V_1\to \operatorname{GL}(m,\mathbb C)$ defined by
\begin{align*}
\mathcal V(y,\eta)_{j\ell}:=\bigl(i\lambda_\ell(0,y,\eta)\bigr)^j.
\end{align*}
Here $0\le j\le m-1$ and $1\le \ell\le m$. Its determinant is
\begin{align*}
\det \mathcal V(y,\eta)=i^{m(m-1)/2}\prod_{1\le k<\ell\le m}\bigl(\lambda_\ell(0,y,\eta)-\lambda_k(0,y,\eta)\bigr),
\end{align*}
which is elliptic on $V_1$ because the roots are pairwise distinct. Hence $\mathcal V^{-1}$ is a matrix of order-zero tangential pseudodifferential symbols on $V_1$.
[/step]