[guided]At the $j$th stage, all higher homogeneous terms have already been chosen. The symbolic calculus has then converted the requirement that the coefficient of degree $r+m-j$ vanish into a first-order equation for only the next unknown coefficient. We write this unknown as
\begin{align*}
c_{r-j}:C_{\phi}\cap W\to\mathbb{C}.
\end{align*}
The equation has the form
\begin{align*}
\mathcal{T}_{r-j}c_{r-j}=f_{r-j},\qquad c_{r-j}|_{C_0}=b_{r-j},
\end{align*}
where
\begin{align*}
\mathcal{T}_{r-j}c=Vc+\gamma_{r-j}c.
\end{align*}
The source term $f_{r-j}$ is already known because it depends only on the previously constructed functions $c_r,\dots,c_{r-j+1}$.
Now use the flow coordinates
\begin{align*}
F:I\times C_0\to C_{\phi}\cap W.
\end{align*}
For a fixed starting point $\rho_0\in C_0$, the curve $s\mapsto F(s,\rho_0)$ is the integral curve of $V$. Therefore, if
\begin{align*}
u:I\to\mathbb{C},\qquad u(s)=c_{r-j}(F(s,\rho_0)),
\end{align*}
then the derivative of $u$ is
\begin{align*}
\frac{d u}{ds}(s)=(Vc_{r-j})(F(s,\rho_0)).
\end{align*}
The transport equation becomes the ordinary differential equation
\begin{align*}
\frac{d u}{ds}(s)+\Gamma_{r-j}(s,\rho_0)u(s)=G_{r-j}(s,\rho_0),
\end{align*}
where
\begin{align*}
\Gamma_{r-j}(s,\rho_0)=\gamma_{r-j}(F(s,\rho_0))
\end{align*}
and
\begin{align*}
G_{r-j}(s,\rho_0)=f_{r-j}(F(s,\rho_0)).
\end{align*}
The prescribed Cauchy data impose
\begin{align*}
u(0)=b_{r-j}(\rho_0).
\end{align*}
The integrating factor method gives the unique solution. Define
\begin{align*}
E_{r-j}(s,\sigma,\rho_0):=\exp\left(-\int_{\sigma}^{s}\Gamma_{r-j}(\lambda,\rho_0)\,d\mathcal{L}^1(\lambda)\right).
\end{align*}
Then
\begin{align*}
c_{r-j}(F(s,\rho_0))=E_{r-j}(s,0,\rho_0)b_{r-j}(\rho_0)+\int_0^s E_{r-j}(s,\sigma,\rho_0)G_{r-j}(\sigma,\rho_0)\,d\mathcal{L}^1(\sigma).
\end{align*}
This formula proves existence and uniqueness along each bicharacteristic. Since the map $F$ is a diffeomorphism, the values along all flow lines define a unique function on the whole critical set $C_{\phi}\cap W$. Smoothness follows from smooth dependence of solutions of linear ordinary differential equations on parameters. Homogeneity is preserved because the flow, the source term, the initial data, and the transport operator all respect the conic scaling.[/guided]