In my book, in the first step of the proof they say the following, where $\cdot$ means dot product:
Since $\alpha$ is parametrized by arc length, we have $$1 = |\alpha'(t)|^2 = (\alpha'(s) \cdot\alpha'(s))$$ for all t
This is not at all clear to me. I don't see why that statement is true and have no idea how to prove it, and am confused that there are two different variables...
I think the $t$ in your statement should be $s$. As written it's confusing.
In any parameterization the vector $\alpha '(t)$ is the tangent vector to the curve at point $\alpha(t)$. In a short time interval the position changes by $\alpha '(t) dt$; you integrate $|\alpha '(t)| dt$ with respect to $t$ to compute the arclength up to $t$.
If $t$ is the parameterization by arclength then the arclength up to $t$ is just $t$ so the integrand $|\alpha '(t)| $ must be identically $1$.
The last step is just the general fact that for any vector $v$ $$ |v|^2 = v \cdot v . $$