The pseudoscalar $I(x)$ defines a projection operator that projects an arbitrary multivector onto the component that is intrinsic to the manifold,
\begin{equation} \textsf P(A(x)) = \begin{cases} A_r(x)\cdot I(x) I^{-1}(x) = A_r \cdot II^{-1} & r \leq n \\ 0 & r > n \end{cases} \end{equation}
The action of any linear function on a pseudoscalar satisfies
$$ \textsf f(I) = (\det \textsf f) I $$
If $\textsf f$ is a diffeomorphism mapping multivector fields to some primed manifold, we also have (equation 2.272, Doran and Lasenby)
$$ \textsf f(I) = (\det \textsf f)I^\prime $$
Thus $I=I^\prime$, isn't that a contradiction? Or are these identical pseudoscalars, merely represented in different coordinates?
Supposedly, we also have eq 6.287
$$ \textsf P^\prime = \textsf {fP} \textsf f^{-1} $$
which suggests that in fact $\textsf P^\prime \neq \textsf P$, meaning $A\cdot I^\prime {I^{\prime}}^{-1} \neq A\cdot I I^{-1}$. But if $I=I^\prime$, then wouldn't we get $\textsf P = \textsf P^\prime$?
I think what is happening is that indeed $I=I^\prime$, but $I^\prime$ may superficially "look" different because it is constructed from primed vectors.
As for $\textsf P^\prime$, I believe it is defined by $\textsf P^\prime (A^\prime) = A^\prime \cdot I^\prime {I^\prime}^{-1}$, thus we can write
\begin{align*} \textsf P^\prime(A^\prime) &= A^\prime\cdot I^\prime {I^\prime}^{-1} \\ &= A^\prime\cdot I {I}^{-1} \\ &= \textsf f \textsf f^{-1}(A^\prime\cdot I I^{-1}) \\ &= \textsf f \textsf f^{-1} \left( (A^\prime \rfloor I) \rfloor I^{-1} \right) \quad \textrm{(Dorst syntax)} \\ &= \textsf f \left( \overline {\textsf f^{-1}}^{-1} (A^\prime \rfloor I) \rfloor \textsf f^{-1}(I^{-1}) \right) \end{align*}
Now, using the general formula for an inverse $\textsf f^{-1}(B) = \frac{\overline{\textsf f} (B\rfloor I^{-1}) \rfloor I }{\det \textsf f}$, we can compute the factor
$$ \textsf f^{-1}(I^{-1}) = \frac{ \overline{\textsf{f}}(I^{-1}\rfloor I^{-1})\rfloor I }{\det \textsf f} = \frac{I }{\det \textsf f} $$
These functions have the property $\overline{\textsf g^{-1}}=\overline{\textsf g}^{-1}$, so $(\overline{\textsf{f}^{-1}})^{-1} = \overline{\textsf{f}}$.
Then
\begin{align*} \textsf P^\prime(A^\prime) &= \frac{1}{\det \textsf f} \textsf f \left( \overline{\textsf{f}} (A^\prime \rfloor I )\rfloor I^{-1} \right) \\ &= \frac{1}{\det \textsf f} \textsf f \left( \left(\overline{\overline{\textsf{f}}}^{-1} (A^\prime) \rfloor \overline{\textsf{f}}(I )\right) \rfloor I^{-1} \right) \\ &= \textsf f \left( \left(\textsf{f}^{-1} (A^\prime) \rfloor I \right) \rfloor I^{-1} \right) \\ &= \textsf{fP}\textsf{f}^{-1} (A^\prime) \end{align*}
so $\textsf P^\prime = \textsf {fPf}^{-1}$.