[step:Check compatibility with extension of scalars]Let $f:A\to B$ be a unital homomorphism of Dedekind domains satisfying the stated hypothesis. Let $\operatorname{Proj}_{\mathrm{fg}}(A)$ denote the category whose objects are finitely generated projective $A$-modules and whose morphisms are $A$-linear maps, and define $\operatorname{Proj}_{\mathrm{fg}}(B)$ analogously. Let
\begin{align*}
B\otimes_A -:\operatorname{Proj}_{\mathrm{fg}}(A)\to \operatorname{Proj}_{\mathrm{fg}}(B)
\end{align*}
denote the extension-of-scalars functor, where $B$ is viewed as an $(B,A)$-bimodule through $f$. The hypothesis on $f$ ensures that this functor has codomain $\operatorname{Proj}_{\mathrm{fg}}(B)$. It is additive because, for finitely generated projective $A$-modules $P$ and $Q$, the canonical tensor-product map gives an isomorphism of $B$-modules
\begin{align*}
B\otimes_A(P\oplus Q)\cong (B\otimes_A P)\oplus(B\otimes_A Q).
\end{align*}
By the universal property of the Grothendieck group, this additive functor induces the homomorphism
\begin{align*}
K_0(f):K_0(A)\to K_0(B),\qquad [P]\mapsto [B\otimes_A P].
\end{align*}
Here $\operatorname{rank}_A(P)$ and $\det_A(P)$ mean the constant rank and determinant of a finitely generated projective $A$-module $P$, and $\operatorname{rank}_B(M)$ and $\det_B(M)$ mean the corresponding constructions for a finitely generated projective $B$-module $M$.
If $L$ is an invertible $A$-module, then $B\otimes_A L$ is an invertible $B$-module, with inverse $B\otimes_A L^{-1}$, because
\begin{align*}
(B\otimes_A L)\otimes_B(B\otimes_A L^{-1})\cong B\otimes_A(L\otimes_A L^{-1})\cong B.
\end{align*}
Thus the expression $[B\otimes_A L]$ defines a class in $\operatorname{Pic}(B)$.
For every finitely generated projective $A$-module $P$, extension of scalars preserves rank. Indeed, put $r=\operatorname{rank}_A(P)$. For every prime ideal $\mathfrak q\in\operatorname{Spec}(B)$, let $\mathfrak p=f^{-1}(\mathfrak q)\in\operatorname{Spec}(A)$. Since $P$ has constant rank $r$, there is an isomorphism of $A_{\mathfrak p}$-modules
\begin{align*}
P_{\mathfrak p}\cong A_{\mathfrak p}^{r}.
\end{align*}
Localizing the base-changed module at $\mathfrak q$ and using the canonical localization isomorphism gives
\begin{align*}
(B\otimes_A P)_{\mathfrak q}\cong B_{\mathfrak q}\otimes_{A_{\mathfrak p}}P_{\mathfrak p}\cong B_{\mathfrak q}^{r}.
\end{align*}
Thus
\begin{align*}
\operatorname{rank}_B(B\otimes_A P)=\operatorname{rank}_A(P).
\end{align*}
The determinant is compatible with base change: if $r=\operatorname{rank}_A(P)$, the canonical exterior-power base-change isomorphism gives an isomorphism of invertible $B$-modules
\begin{align*}
\det_B(B\otimes_A P)=\bigwedge_B^r(B\otimes_A P)\cong B\otimes_A\bigwedge_A^r P=B\otimes_A \det_A(P).
\end{align*}
Therefore
\begin{align*}
\Phi_B(K_0(f)([P]))=(\operatorname{rank}_A(P),[B\otimes_A \det_A(P)]).
\end{align*}
For a virtual class represented under $\Phi_A$ by $(n,[L])$, this formula becomes
\begin{align*}
(n,[L])\longmapsto (n,[B\otimes_A L]).
\end{align*}
This is the asserted naturality formula, and the proof is complete.[/step]