The axiom of infinity is formulated as
$$\exists S ( \varnothing \in S \wedge (\forall x \in S) x \cup \{x\} \in S)$$
Can someone explain why the use of $\varnothing$ in the axiom of infinity makes sense, when the very existence of $\varnothing$ is predicated on it?
The Axiom of Existence states that the empty set exists. If you don't accept the Axiom of Existence as axiomatic, the Axiom of Infinity implies the existence of $\varnothing$, though you need another axiom to "extract" it from $S$.