I'm filling the gaps in the proof of Theorem 22 in textbook Algebra by Saunders MacLane and Garrett Birkhoff. Could you please verify if my second part. i.e. $\phi [S_{1} \lor S_{2}] = \phi [S_{1}] \lor \phi [S_{2}]$ is fine or contains logical mistakes?
Let $\phi: G \rightarrow H$ be a group homomorphism, $\mathcal G = \{S \le G \mid \operatorname{Ker} \phi \subseteq S \subseteq G\}$, and $\mathcal H := \{T \le H \mid \{1\} \subseteq T \subseteq \operatorname{Im} \phi\}$. For $S \le G$ and $T \le H$, the induced maps $\phi[\cdot]$ and $\phi^{-1}[\cdot]$ are defined by $\phi[S] := \{\phi(x) \mid x \in S\}$ and $\phi^{-1}[T] := \{x \in G \mid \phi(x) \in T\}$. Then $\phi[\cdot]$ and $\phi^{-1}[\cdot]$ are isomorphisms w.r.t intersection and join between $\mathcal G$ and $\mathcal H$.
First, we need a lemma to make the proof cleaner.
Lemma: If $S \in \mathcal G$, then $\phi^{-1}[\phi[S]] = S$.
Proof: Let $(x,y) \in S \times G$ such that $\phi(x) = \phi(y)$. Then $\phi (x y^{-1}) = \phi(x) \phi(y)^{-1} =1$ and thus $xy^{-1} \in \operatorname{Ker} \phi \subseteq S$. Hence $x y^{-1} \in S$ and thus $y \in S$. The result then follows.
- $\phi [S_{1} \cap S_{2}] = \phi [S_{1}] \cap \phi [S_{2}]$
Clearly, $\phi [S_{1} \cap S_{2}] \subseteq \phi [S_{1}] \cap \phi [S_{2}]$. We have $\phi [S_{1}] \cap \phi [S_{2}] \subseteq \phi [S_{1}]$ and thus $\phi^{-1}[\phi [S_{1}] \cap \phi [S_{2}]] \subseteq \phi^{-1}[\phi [S_{1}]] \overset{(\star)}{=}S_1$. Similarly, $\phi^{-1}[\phi [S_{1}] \cap \phi [S_{2}]] \subseteq S_2$. Hence $\phi^{-1}[\phi [S_{1}] \cap \phi [S_{2}]] \subseteq S_1 \cap S_2$ and thus $\phi [S_{1}] \cap \phi [S_{2}] \subseteq \phi[S_1 \cap S_2]$.
$(\star)$: This is due to the lemma.
- $\phi [S_{1} \lor S_{2}] = \phi [S_{1}] \lor \phi [S_{2}]$
Notice that $S_1 \lor S_2 = \{s_1\cdots s_n \mid n \in \mathbb N^\times \text{ and } s_i \in S_1 \cup S_2\}$. Then $\phi [S_{1} \lor S_{2}] = \{ \phi(s_1)\cdots \phi(s_n) \mid n \in \mathbb N^\times \text{ and } s_i \in S_1 \cup S_2\}$. It follows from the lemma that $s_i \in S_1 \cup S_2 \iff \phi(s_i) \in \phi[S_1 \cup S_2]$. Hence $\phi [S_{1} \lor S_{2}] = \{h_1\cdots h_n\mid n \in \mathbb N^\times \text{ and } h_i \in \phi[S_1 \cup S_2]\}$. On the other hand, $\phi[S_1 \cup S_2] = \phi[S_1] \cup \phi[S_2]$ and consequently $\phi [S_{1} \lor S_{2}] = \{h_1\cdots h_n\mid n \in \mathbb N^\times \text{ and } h_i \in \phi[S_1] \cup \phi[S_2]\} = \phi [S_{1}] \lor \phi [S_{2}]$.
- $\phi[\cdot]$ is bijective
Let $S_1,S_2 \in \mathcal G$ such that $\phi[S_1] = \phi[S_2]$. By our lemma, $S_1 = \phi^{-1}[\phi[S_1]] = \phi^{-1}[\phi[S_2]] = S_2$. Then $\phi$ is injective. It follows from $\phi [\phi^{-1}[T]] = T \in \mathcal H$ that $\phi$ is surjective.
Similarly, $\phi^{-1} [\cdot]$ is bijective.
Proof of the lemma. The inclusion $S\subseteq \phi^{-1}[\phi[S]]$ is true for any map. Suppose $x\in\phi^{-1}[\phi[S]]$. Then $\phi(x)=\phi(y)$, for some $y\in S$. Therefore $xy^{-1}\in\ker\phi\subseteq S$. Hence $x=(xy^{-1})y\in S$.
Comment: you're hiding what you want to prove.
You're missing also the proof that the map $\mathcal{G}\to\mathcal{H}$ is well defined, but I guess it has already been proved that $\phi[S]$ is a subgroup of $H$, whenever $\phi\colon G\to H$ is a homomorphism and $S$ is a subgroup of $G$.
Proof that $\phi[S\cap T]=\phi[S]\cap\phi[T]$ (using different letters reduces clutter).
One inclusion is true for any map and any choice of subsets of the domain. Suppose $z\in\phi[S]\cap\phi[T]$. Then $z=\phi(x)=\phi(y)$, for some $x\in S$, $y\in T$. In particular $xy^{-1}\in\ker\phi$, so $xy^{-1}\in T$. Hence $x=xy^{-1}y\in T$, so $x\in S\cap T$ and $z=\phi(x)\in\phi[S\cap T]$.
Comment: you need not show that $y\in S\cap T$.
Proof that $\phi[S\vee T]=\phi[S]\vee\phi[T]$.
Since $S\subseteq S\vee T$, we have $\phi[S]\subseteq\phi[S\vee T]$ and similarly for $\phi[T]$. Therefore $\phi[S]\vee\phi[T]\subseteq\phi[S\vee T]$.
The reverse inclusion is easier if you show directly that a set of generators of $\phi[S\vee T]$ is $\phi[S]\cup\phi[T]$. Indeed, the latter set is a subset of the former; an element of $\phi[S\vee T]$ is an element of the form $\phi(a_1a_2\dotsm a_n)=\phi(a_1)\phi(a_2)\dotsm\phi(a_n)$, where $a_i\in S\cup T$ and the result follows.
Bijectivity. The lemma proves that $\phi^{-1}[\cdot]$ is the identity. Therefore $\phi[\cdot]$ is injective. But if $T\in\mathcal{H}$, we have $T=\phi[\phi^{-1}[T]]$, because this is true for any map and any subset of the range thereof. Now just notice that $\phi^{-1}[T]\in\mathcal{G}$.
Comment: you're missing the proof that $\phi[\cdot]$ is surjective.