Here are a few corollaries of the multiplicativity of towers of field extensions.
Corollary 15.3.6(b):
First of all, why is this $\mathcal K$ introduced, what's its purpose?
Second, where does $\beta$ live?
Third, how is 15.3.6(b) applied? So $\beta$ is algebraic over $F$ because by assumption $N$ is finite, right? Then the corollary says that $\beta\in K'$ is algebraic over $K$ and its degree (namely $[K':K]$) is at most equal the degree of $\beta$ over $F$. But I thought this last degree is $[K':F]=N$, isn't it?
Finally, does this proof implicitly use the fact that any finite extension is gotten by adjoining several elements? If so, are these elements just the basis elements? How does the induction work here?


First - $\mathcal K$ is introduced to ensure that the compositum $K'$ of $K$ and $F'$ is a field. An example showing why it's needed is given by certain 2 by 2 matrices over $\Bbb{Q}$. The set of matrices $\begin{pmatrix} a & -b \\ b & a\end{pmatrix}$ for $a,b$ in $\Bbb{Q}$ form a field isomorphic to $\Bbb{Q}[\alpha]$ with $\alpha^2+1=0$. Similarly the set of matrices $\begin{pmatrix} a & -b \\ b & a-b \end{pmatrix}$ for $a,b$ in $\Bbb{Q}$ form a field isomorphic to $\Bbb{Q}[\omega]$ with $\omega^2+\omega+1=0$. Taken together these 2 fields generate $\operatorname{M}_2(\Bbb{Q})$, the full ring of 2 by 2 matrices over $\Bbb{Q}$, and not a field thus the need for $\mathcal K$.
Second - $\beta$ generates $F'$ over $F$, so $\beta$ must live in $F'$.
Third - Yes. Since $F'$ has finite dimension over $F$, it must finitely generated and algebraic. The degree of $\beta$ over $F$ is $[F':F]=n$
Finally - A field extension of finite degree is finitely generated because the degree of a field extension is equal to the minimum number of vectors needed to generate the field as a vector space. See the answers here for instance.