Let $g = x^2 +6x -7$ and $f = x^4 - 1$. Find the GCD of $f$ and $g$.
So I started by evaluating $f/g$ and the result is $q = x^2-6x+43, r = -300x+300$. I tried to follow the algorithm one step further but I can't see how the result ends up to be $x-1$.
As you say, euclidean division yields \begin{align*} (x^4-1) &= (x^2 - 6x + 43)(x^2 + 6x - 7) + (-300x+300)\\ &= q(x)\cdot(x^2 + 6x - 7) + r(x) \end{align*} Then $\gcd(x^4-1,\,x^2+6x-7)=\gcd(x^2+6x-7, -300x+300)$. You can apply again euclidean division to conclude
But you already knew this. What you may have missed is that the greatest common divisor is unique up to units. In particular $$-300x+300 = -300\cdot(x-1)$$ Now, since 300 is a unit, we can say:
The point is that the constant term is not important. You can divide by $-300$ and you still have a greatest common divisor.