[proofplan]
We construct the isomorphism by first identifying the [Hilbert space](/page/Hilbert%20Space) $H$ with $e_{i_0i_0}H\otimes \ell^2(I)$ using the complete family of orthogonal projections $(e_{ii})_{i\in I}$. Under this unitary identification, each matrix unit $e_{ij}$ becomes $1\otimes E_{ij}$. We then show that every $x\in M$ has matrix coefficients in the corner $N$, so its conjugate lies in $N\overline{\otimes}\mathcal{L}(\ell^2(I))$, and conversely every elementary tensor over $N$ is obtained from an element of $M$. Strong convergence of finite diagonal compressions upgrades the finite matrix calculation to the full von Neumann algebra.
[/proofplan]
[step:Build the Hilbert space identification from the complete diagonal projections]
Let $K:=e_{i_0i_0}H$. For each finite subset $F\subset I$, define
\begin{align*}
p_F:=\sum_{i\in F}e_{ii}\in M.
\end{align*}
The projections $(p_F)_F$, indexed by finite subsets of $I$ ordered by inclusion, form an increasing net. Since $\bigvee_{i\in I}e_{ii}=1$, the projection-lattice description in [citetheorem:9267] gives
\begin{align*}
p_F\to 1
\end{align*}
strongly.
Define a map
\begin{align*}
U:H&\to K\otimes \ell^2(I)
\end{align*}
by the Hilbert-space direct-sum formula
\begin{align*}
U\xi:=\sum_{i\in I}e_{i_0i}\xi\otimes \delta_i,
\end{align*}
where $(\delta_i)_{i\in I}$ is the standard [orthonormal basis](/page/Orthonormal%20Basis) of $\ell^2(I)$. This sum is well-defined because
\begin{align*}
\sum_{i\in F}\|e_{i_0i}\xi\|_H^2
=\sum_{i\in F}(e_{ii}\xi,\xi)_H
=(p_F\xi,\xi)_H
\le \|\xi\|_H^2
\end{align*}
for every finite $F\subset I$.
Moreover, taking the supremum over finite $F$ and using $p_F\to 1$ strongly gives
\begin{align*}
\|U\xi\|_{K\otimes \ell^2(I)}^2
=\sup_F\sum_{i\in F}\|e_{i_0i}\xi\|_H^2
=\|\xi\|_H^2.
\end{align*}
Thus $U$ is an isometry.
The range of $U$ contains every elementary vector $\eta\otimes \delta_j$ with $\eta\in K$ and $j\in I$, because if $\eta\in K=e_{i_0i_0}H$, then
\begin{align*}
U(e_{ji_0}\eta)=\eta\otimes \delta_j.
\end{align*}
Hence $U$ has dense range. Since $U$ is an isometry, its range is closed, and therefore $U$ is unitary.
[guided]
The purpose of this step is to turn the abstract matrix units into the standard matrix units on a tensor-product Hilbert space. The diagonal projections $e_{ii}$ split $H$ into mutually orthogonal pieces, and the partial isometries $e_{i_0i}$ transport the $i$-th piece back to the fixed reference corner $K=e_{i_0i_0}H$.
For each finite subset $F\subset I$, define
\begin{align*}
p_F:=\sum_{i\in F}e_{ii}.
\end{align*}
The matrix-unit relations imply that the projections $e_{ii}$ are pairwise orthogonal. Since their supremum is $1$, the net $(p_F)_F$ over finite subsets of $I$ increases strongly to $1$ by [citetheorem:9267].
Now define
\begin{align*}
U:H&\to K\otimes \ell^2(I)
\end{align*}
by
\begin{align*}
U\xi:=\sum_{i\in I}e_{i_0i}\xi\otimes \delta_i.
\end{align*}
This is not a formal infinite sum without justification: in the Hilbert direct sum, it suffices to check that the finite partial square norms are bounded. For finite $F\subset I$,
\begin{align*}
\sum_{i\in F}\|e_{i_0i}\xi\|_H^2
=\sum_{i\in F}(e_{ii}\xi,\xi)_H
=(p_F\xi,\xi)_H
\le \|\xi\|_H^2.
\end{align*}
Therefore the family $(e_{i_0i}\xi)_{i\in I}$ is square-summable in the Hilbert direct sum.
Taking the supremum over all finite $F$ and using strong convergence $p_F\xi\to \xi$, we obtain
\begin{align*}
\|U\xi\|_{K\otimes \ell^2(I)}^2
=\sup_F(p_F\xi,\xi)_H
=\|\xi\|_H^2.
\end{align*}
So $U$ is an isometry.
It remains to see that $U$ is onto. Let $\eta\in K$ and $j\in I$. Since $\eta=e_{i_0i_0}\eta$, the matrix-unit relations give
\begin{align*}
U(e_{ji_0}\eta)=\eta\otimes \delta_j.
\end{align*}
Thus every elementary tensor $\eta\otimes\delta_j$ lies in the range of $U$. These elementary tensors span a dense subspace of $K\otimes \ell^2(I)$, and the range of an isometry is closed. Hence $U$ is unitary.
[/guided]
[/step]
[step:Identify the given matrix units with the standard matrix units]
Let $(E_{ij})_{i,j\in I}$ denote the standard matrix units on $\ell^2(I)$, defined by
\begin{align*}
E_{ij}\delta_k=\delta_{jk}\delta_i.
\end{align*}
For $\xi\in H$ and $a,b\in I$, the $i$-th component of $Ue_{ab}\xi$ is
\begin{align*}
e_{i_0i}e_{ab}\xi=\delta_{ia}e_{i_0b}\xi.
\end{align*}
The $i$-th component of $(1_{\mathcal{L}(K)}\otimes E_{ab})U\xi$ is the same vector. Hence
\begin{align*}
Ue_{ab}U^*=1_{\mathcal{L}(K)}\otimes E_{ab}
\end{align*}
for all $a,b\in I$.
[/step]
[step:Show that conjugating $M$ gives operators with coefficients in the corner $N$]
For $x\in M$ and $i,j\in I$, define the matrix coefficient
\begin{align*}
x_{ij}:=e_{i_0i}xe_{ji_0}\in e_{i_0i_0}Me_{i_0i_0}=N.
\end{align*}
For $\eta\in K$ and $j\in I$, using $U^*(\eta\otimes \delta_j)=e_{ji_0}\eta$, we compute
\begin{align*}
(UxU^*)(\eta\otimes \delta_j)
=Uxe_{ji_0}\eta.
\end{align*}
Its $i$-th component is
\begin{align*}
e_{i_0i}xe_{ji_0}\eta=x_{ij}\eta.
\end{align*}
Thus $UxU^*$ is represented by the operator matrix $(x_{ij})_{i,j\in I}$ with entries in $N$.
For each finite $F\subset I$, define
\begin{align*}
q_F:=\sum_{i\in F}E_{ii}\in \mathcal{L}(\ell^2(I)).
\end{align*}
Then
\begin{align*}
(1\otimes q_F)UxU^*(1\otimes q_F)
=\sum_{i,j\in F}x_{ij}\otimes E_{ij}\in N\overline{\otimes}\mathcal{L}(\ell^2(I)).
\end{align*}
Since $q_F\to 1$ strongly on $\ell^2(I)$, the projections $1\otimes q_F$ converge strongly to $1$ on $K\otimes \ell^2(I)$. Therefore the finite compressions above converge strongly to $UxU^*$. The von Neumann algebra $N\overline{\otimes}\mathcal{L}(\ell^2(I))$ is strongly closed, so
\begin{align*}
UxU^*\in N\overline{\otimes}\mathcal{L}(\ell^2(I)).
\end{align*}
[/step]
[step:Show that every elementary tensor over $N$ comes from $M$]
Let $n\in N$ and $i,j\in I$. Since $n=e_{i_0i_0}ne_{i_0i_0}$, the element
\begin{align*}
y_{ij}(n):=e_{ii_0}ne_{i_0j}
\end{align*}
belongs to $M$. For $\eta\in K$ and $k\in I$,
\begin{align*}
Uy_{ij}(n)U^*(\eta\otimes \delta_k)
=Uy_{ij}(n)e_{ki_0}\eta.
\end{align*}
Using the matrix-unit relation $e_{i_0j}e_{ki_0}=\delta_{jk}e_{i_0i_0}$, this becomes
\begin{align*}
Uy_{ij}(n)e_{ki_0}\eta
=\delta_{jk}Ue_{ii_0}n\eta
=\delta_{jk}n\eta\otimes \delta_i.
\end{align*}
Hence
\begin{align*}
Uy_{ij}(n)U^*=n\otimes E_{ij}.
\end{align*}
The von Neumann algebra generated by all elementary tensors $n\otimes E_{ij}$ is $N\overline{\otimes}\mathcal{L}(\ell^2(I))$. Therefore
\begin{align*}
N\overline{\otimes}\mathcal{L}(\ell^2(I))\subseteq UMU^*.
\end{align*}
Together with the previous step, this gives
\begin{align*}
UMU^*=N\overline{\otimes}\mathcal{L}(\ell^2(I)).
\end{align*}
[/step]
[step:Extract the normal isomorphism and the generation statement]
Define
\begin{align*}
\Phi:M&\to N\overline{\otimes}\mathcal{L}(\ell^2(I))
\end{align*}
\begin{align*}
x&\mapsto UxU^*.
\end{align*}
Conjugation by a unitary is a normal faithful $*$-isomorphism from $M$ onto $UMU^*$, and the preceding step identifies $UMU^*$ with $N\overline{\otimes}\mathcal{L}(\ell^2(I))$. Therefore $\Phi$ is a normal $*$-isomorphism.
For $n=e_{i_0i_0}xe_{i_0i_0}\in N$, the computation in the previous step gives
\begin{align*}
\Phi(e_{ii_0}ne_{i_0j})=n\otimes E_{ij}.
\end{align*}
In particular,
\begin{align*}
\Phi(e_{ij})=1_N\otimes E_{ij}.
\end{align*}
Equivalently, the inverse isomorphism sends
\begin{align*}
n\otimes E_{ij}\mapsto e_{ii_0}ne_{i_0j}.
\end{align*}
Finally, for $x\in M$ and finite $F\subset I$,
\begin{align*}
p_Fxp_F=\sum_{i,j\in F}e_{ii}xe_{jj}
=\sum_{i,j\in F}e_{ii_0}(e_{i_0i}xe_{ji_0})e_{i_0j}.
\end{align*}
Each coefficient $e_{i_0i}xe_{ji_0}$ belongs to $N$, so $p_Fxp_F$ belongs to the von Neumann algebra generated by $N$ and the matrix units. Since $p_F\to 1$ strongly, we have $p_Fxp_F\to x$ strongly. A von Neumann algebra is strongly closed, so $x$ belongs to the von Neumann algebra generated by $N$ and the matrix units. Hence $M$ is generated by $N$ and $(e_{ij})_{i,j\in I}$, completing the proof.
[/step]