I am confused about the solution and method of differentiating this function:
$$\frac{d}{dx}\:\textrm{ln}\sqrt{\textrm{ln}\:x}$$
Why is ln not considered a constant and then multiplied by the derivative of$\:\sqrt{\textrm{ln}\:x}$ ?
The solution is given as:
$$\left(\frac{1}{2x\:\textrm{ln}x}\right)$$ How exactly is the chain rule applied to the entire function at once?
You are misreading.
You have misinterpreted the expression as being the same thing as
$$ \ln \times \sqrt{\ln x} $$
which involves a multiplication, but that's totally wrong. It means
$$ \ln\left( \sqrt{\ln x} \right) $$
that is, the function $\ln$ is being evaluated at the value $\sqrt{\ln x}$.