[guided]The theorem does not assume the first-order reduction. We derive it after shrinking $J$ and $V$ so that the roots $\lambda_1,\dots,\lambda_m$ stay smooth and separated and the bicharacteristics remain in the chosen conic set. Since the coefficient $a_m$ of $\tau^m$ is elliptic, an elliptic parametrix for $a_m$ reduces the principal symbol to
\begin{align*}
\prod_{j=1}^m(\tau-\lambda_j(t,y,\eta)).
\end{align*}
Choose a positive elliptic properly supported tangential operator $\Lambda\in\Psi^1(Y)$ and set
\begin{align*}
v=(\Lambda^{m-1}u,\Lambda^{m-2}D_tu,\dots,D_t^{m-1}u).
\end{align*}
The companion construction gives a first-order system
\begin{align*}
(D_t-A(t,y,D_y))v=0
\end{align*}
modulo smoothing errors, where $A(t)\in\Psi^1(Y;\mathbb C^m,\mathbb C^m)$ and its principal symbol $a_1(t,y,\eta)$ satisfies
\begin{align*}
\det(\tau I_m-a_1(t,y,\eta))=\prod_{j=1}^m(\tau-\lambda_j(t,y,\eta)).
\end{align*}
Because the eigenvalues $\lambda_j(t,y,\eta)$ are pairwise distinct, the spectral projectors of $a_1(t,y,\eta)$ are smooth homogeneous degree-zero matrix symbols. Quantizing those projectors diagonalizes the system at principal level, with diagonal principal symbols $\lambda_j$, and the lower-order off-diagonal terms are left for the transport equations. This is the proof machinery, and it has now been derived from the natural strict-hyperbolicity hypotheses.[/guided]