[proofplan]
The proof is local, because the vanishing of a smooth CR form can be checked after evaluating it on local sections of $T^{0,1}M$. We first recall that $\bar\partial_b$ is obtained by extending a CR antiholomorphic form to an ordinary complex differential form and then restricting its [exterior derivative](/theorems/1525) to $T^{0,1}M$ directions. Formal integrability is precisely what makes this restriction independent of the chosen extension. Once this is established, applying $\bar\partial_b$ twice is the same as restricting $d^2$ to $T^{0,1}M$, and the ordinary identity $d^2=0$ gives the result, with the top-degree cases handled by the zero target convention.
[/proofplan]
[step:Reduce the assertion to a local computation on antiholomorphic CR vector fields]
Fix an integer $q$ with $0\le q\le m$ and let $\alpha\in C^\infty(M,\Lambda_b^{0,q}M)$. It is enough to show that, for every [open set](/page/Open%20Set) $U\subset M$ and every collection of local smooth sections
\begin{align*}
\bar L_0,\dots,\bar L_{q+1}\in C^\infty(U,T^{0,1}M),
\end{align*}
one has
\begin{align*}
(\bar\partial_b\bar\partial_b\alpha)(\bar L_0,\dots,\bar L_{q+1})=0
\end{align*}
on $U$.
When $q\ge m-1$, the bundle $\Lambda_b^{0,q+2}M$ is zero by convention, so the target of $\bar\partial_b\circ\bar\partial_b$ is the zero bundle and the asserted map is zero. Hence it remains to treat the case $0\le q\le m-2$.
[/step]
[step:Identify $\bar\partial_b$ with restricted exterior differentiation]
Let $U\subset M$ be an open set over which $T^{0,1}M$ admits a smooth local frame. Let
\begin{align*}
\alpha_U:=\alpha|_U\in C^\infty(U,\Lambda_b^{0,q}M)
\end{align*}
denote the restriction of $\alpha$ to $U$. Choose an ordinary complex-valued smooth $q$-form
\begin{align*}
\widetilde\alpha\in C^\infty(U,\Lambda^q(\mathbb C T^*M))
\end{align*}
whose restriction to $q$ arguments in $T^{0,1}M$ equals $\alpha_U$. Such an extension exists by choosing a smooth local complement to $T^{0,1}M$ in $\mathbb C TM$ and extending the alternating multilinear form arbitrarily on that complement.
We claim that, for local sections $\bar L_0,\dots,\bar L_q\in C^\infty(U,T^{0,1}M)$,
\begin{align*}
(\bar\partial_b\alpha_U)(\bar L_0,\dots,\bar L_q)=(d\widetilde\alpha)(\bar L_0,\dots,\bar L_q).
\end{align*}
This is the defining local convention for the tangential Cauchy-Riemann operator on CR antiholomorphic forms.
It remains only to justify that the right-hand side is independent of the chosen extension. Let
\begin{align*}
\widetilde\alpha_1,\widetilde\alpha_2\in C^\infty(U,\Lambda^q(\mathbb C T^*M))
\end{align*}
be two extensions of $\alpha_U$, and set $\beta:=\widetilde\alpha_1-\widetilde\alpha_2$. Then $\beta(\bar K_1,\dots,\bar K_q)=0$ for all local sections $\bar K_1,\dots,\bar K_q$ of $T^{0,1}M$. The Koszul formula for $d\beta$ gives a sum of derivative terms and bracket terms. Each derivative term differentiates the zero function $\beta(\bar K_1,\dots,\bar K_q)$. Each bracket term contains an argument of the form $[\bar L_i,\bar L_j]$, which lies in $T^{0,1}M$ by formal integrability. Hence every term vanishes, and
\begin{align*}
(d\widetilde\alpha_1)(\bar L_0,\dots,\bar L_q)=(d\widetilde\alpha_2)(\bar L_0,\dots,\bar L_q).
\end{align*}
[guided]
The point of this step is to make precise what “restricting $d$ to CR antiholomorphic directions” means. Start with an open set $U\subset M$ on which the bundle $T^{0,1}M$ has a smooth local frame, and write
\begin{align*}
\alpha_U:=\alpha|_U\in C^\infty(U,\Lambda_b^{0,q}M).
\end{align*}
A CR antiholomorphic $q$-form is only defined on $q$ arguments from $T^{0,1}M$. To apply the ordinary exterior derivative $d$, we first choose an ordinary complex-valued smooth $q$-form
\begin{align*}
\widetilde\alpha\in C^\infty(U,\Lambda^q(\mathbb C T^*M))
\end{align*}
whose value on $T^{0,1}M$ agrees with $\alpha_U$. This extension exists because, locally, a vector bundle complement to $T^{0,1}M$ in $\mathbb C TM$ can be chosen, and an alternating form on $T^{0,1}M$ can be extended by specifying its values on the complementary directions.
We then define the local value of $\bar\partial_b\alpha_U$ by
\begin{align*}
(\bar\partial_b\alpha_U)(\bar L_0,\dots,\bar L_q):=(d\widetilde\alpha)(\bar L_0,\dots,\bar L_q)
\end{align*}
for local sections $\bar L_0,\dots,\bar L_q\in C^\infty(U,T^{0,1}M)$. The only issue is whether this depends on the extension $\widetilde\alpha$.
Suppose
\begin{align*}
\widetilde\alpha_1,\widetilde\alpha_2\in C^\infty(U,\Lambda^q(\mathbb C T^*M))
\end{align*}
are two such extensions, and define their difference by $\beta:=\widetilde\alpha_1-\widetilde\alpha_2$. Then
\begin{align*}
\beta(\bar K_1,\dots,\bar K_q)=0
\end{align*}
for every collection of local sections $\bar K_1,\dots,\bar K_q$ of $T^{0,1}M$, because the two extensions agree on exactly those arguments.
Now evaluate $d\beta$ on $\bar L_0,\dots,\bar L_q$. The Koszul formula for the exterior derivative consists of terms in which one vector field differentiates the function obtained by inserting the remaining arguments into $\beta$, and terms in which $\beta$ is evaluated after replacing two arguments by their Lie bracket. The derivative terms vanish because they differentiate functions of the form
\begin{align*}
\beta(\bar L_0,\dots,\widehat{\bar L_i},\dots,\bar L_q),
\end{align*}
and these functions are identically zero. The bracket terms vanish because formal integrability gives
\begin{align*}
[\bar L_i,\bar L_j]\in C^\infty(U,T^{0,1}M)
\end{align*}
for every pair $i,j$, so $\beta$ is still being evaluated only on $T^{0,1}M$ arguments. Therefore
\begin{align*}
(d\beta)(\bar L_0,\dots,\bar L_q)=0.
\end{align*}
Since $d\beta=d\widetilde\alpha_1-d\widetilde\alpha_2$, this proves
\begin{align*}
(d\widetilde\alpha_1)(\bar L_0,\dots,\bar L_q)=(d\widetilde\alpha_2)(\bar L_0,\dots,\bar L_q).
\end{align*}
Thus the restricted exterior derivative is well-defined, and this is precisely the local operator $\bar\partial_b$.
[/guided]
[/step]
[step:Apply ordinary nilpotence of the exterior derivative after the restriction is justified]
Continue on the same open set $U\subset M$, and keep the extension
\begin{align*}
\widetilde\alpha\in C^\infty(U,\Lambda^q(\mathbb C T^*M)).
\end{align*}
From the previous step,
\begin{align*}
\bar\partial_b\alpha_U=(d\widetilde\alpha)|_{T^{0,1}M}
\end{align*}
as a CR antiholomorphic $(q+1)$-form. Therefore the ordinary $(q+1)$-form $d\widetilde\alpha$ is a valid local extension of $\bar\partial_b\alpha_U$.
For local sections $\bar L_0,\dots,\bar L_{q+1}\in C^\infty(U,T^{0,1}M)$, the definition of $\bar\partial_b$ applied to the CR form $\bar\partial_b\alpha_U$ gives
\begin{align*}
(\bar\partial_b\bar\partial_b\alpha_U)(\bar L_0,\dots,\bar L_{q+1})=(d(d\widetilde\alpha))(\bar L_0,\dots,\bar L_{q+1}).
\end{align*}
The ordinary exterior derivative satisfies $d^2=0$, by the Koszul cancellation using the Lie bracket Jacobi identity. Hence
\begin{align*}
(d(d\widetilde\alpha))(\bar L_0,\dots,\bar L_{q+1})=0.
\end{align*}
Thus
\begin{align*}
(\bar\partial_b\bar\partial_b\alpha_U)(\bar L_0,\dots,\bar L_{q+1})=0
\end{align*}
on $U$.
[/step]
[step:Conclude the global vanishing of the composed operator]
The open set $U\subset M$ and the local sections $\bar L_0,\dots,\bar L_{q+1}$ were arbitrary. Since a section of $\Lambda_b^{0,q+2}M$ is determined locally by its values on local sections of $T^{0,1}M$, the equality
\begin{align*}
(\bar\partial_b\bar\partial_b\alpha)|_U=0
\end{align*}
holds on every such open set $U$ when $0\le q\le m-2$.
For $q=m-1$ and $q=m$, the target bundle $\Lambda_b^{0,q+2}M$ is zero by convention, so the composition also vanishes. Since $\alpha\in C^\infty(M,\Lambda_b^{0,q}M)$ was arbitrary, this proves
\begin{align*}
\bar\partial_b\circ\bar\partial_b=0:C^\infty(M,\Lambda_b^{0,q}M)\to C^\infty(M,\Lambda_b^{0,q+2}M)
\end{align*}
for every integer $q$ with $0\le q\le m$.
[/step]