[guided]The goal is to show that a diagonal matrix carries only one invariant: the product of its diagonal entries in the abelianized unit group. The noncommutative issue is that $a_1a_2$ and $a_2a_1$ need not be equal in $D^\times$, so we must always interpret products after applying
\begin{align*}
\pi:D^\times\to D^\times/[D^\times,D^\times].
\end{align*}
First, the stable Whitehead quotient theorem [citetheorem:8654] says that the stable quotient $GL(R)/E(R)$ is an abelian group for every unital ring $R$. We apply it with $R=D$. The present $GL(D)$ is defined using the same stabilization maps $A\mapsto\operatorname{diag}(A,1)$, and the present $E(D)$ is generated by the same elementary transvections, so the theorem gives that $K_1(D)=GL(D)/E(D)$ is abelian. Thus if $g,h\in GL(D)$, then the images of $g h g^{-1}$ and $h$ in $K_1(D)$ are equal, because
\begin{align*}
q(g h g^{-1})=q(g)q(h)q(g)^{-1}=q(h)
\end{align*}
in an abelian group. For a permutation $\sigma\in S_n$, let $P_\sigma\in GL_n(D)$ be the permutation matrix with $(P_\sigma)_{i,\sigma(i)}=1_D$ and all other entries equal to $0_D$. Conjugating a diagonal matrix by $P_\sigma$ only reorders its diagonal entries. Since conjugate elements have the same image in $K_1(D)$, diagonal entries may be permuted without changing the $K_1$-class of the diagonal matrix.
Second, two diagonal entries can be multiplied into one slot. For $a,b\in D^\times$, we have the literal matrix identity
\begin{align*}
\operatorname{diag}(a,1)\operatorname{diag}(b,1)=\operatorname{diag}(ab,1).
\end{align*}
Since $\operatorname{diag}(1,b)$ is conjugate to $\operatorname{diag}(b,1)$ by the transposition matrix, the previous paragraph gives
\begin{align*}
q(\operatorname{diag}(1,b))=q(\operatorname{diag}(b,1)).
\end{align*}
Therefore
\begin{align*}
q(\operatorname{diag}(a,b))=q(\operatorname{diag}(a,1))q(\operatorname{diag}(1,b))=q(\operatorname{diag}(ab,1)).
\end{align*}
Repeating this compression finitely many times gives
\begin{align*}
q(\operatorname{diag}(a_1,\dots,a_n))=q(\operatorname{diag}(a_1\cdots a_n,1,\dots,1)).
\end{align*}
Finally, replacing the product $a_1\cdots a_n$ by another representative of the same class in $D^\times/[D^\times,D^\times]$ does not change the $K_1$-class. If $c=xyx^{-1}y^{-1}$ is a multiplicative commutator in $D^\times$, then
\begin{align*}
\operatorname{diag}(c,1)=[\operatorname{diag}(x,1),\operatorname{diag}(y,1)]
\end{align*}
as an element of $GL_2(D)$. Its image in the abelian group $K_1(D)$ is therefore the identity. Since every element of $[D^\times,D^\times]$ is a finite product of such commutators, $\operatorname{diag}(c,1)$ has class equal to the identity element of $K_1(D)$ for every $c\in [D^\times,D^\times]$.[/guided]