The function $$f(z)=\sqrt{z^2-1}$$ does not have a branch point at infinity. However, people often take branch cuts going from $z=\pm 1$ to $\infty$ along the real positive and negative axis respectively. Why is this acceptable?
My guess would be that technically this is a branch point going from $z=+1$ to $z=-1$ since in the complex plane the point $z=\infty$ is taken to be one point (I think anyway, although I have heard mention of cases when it is not??!).
There is nothing particularly wrong with allowing a branch cut whose endpoint is at an unbranched point.
The key requirement in choosing a branch cut --- which I will denote by $BC$ --- is that it contains all branch points, and for any point $z_0$ in the complement of $BC$ and any appropriate value of $w_0=f(z_0)$, this one value can be extended to an analytic function $w=f(z)$ on the complement of $BC$.
In the case of $f(z)=\sqrt{z^2-1}$, your question discusses two choices of branch cut, and each one satisfies the key requirement: