I started with the fact that $\xi$ is a root of $t^{12}-1$. Then I factored $t^{12}-1$ so that $t^4-2t^2+1$ is a factor.
$$t^{12}-1=(t-1)(t^2+t+1)(t+1)(t^2-t+1)(t^2+1)(t^4-2t^2+1)$$
However, I still can't verify that $\xi$ is a root of that particular factor. Any suggestions?
Take it systematically, how did you factor it ? The first step was $$x^{12}-1=(x^{6}-1)(x^{6}+1)$$ now $\zeta$ is not a root of $x^{6}-1$ since it is a primitive 12th root. Thus it is a root of $x^{6}+1$. The next step is $$x^{6}+1=(x^2+1)(x^4-x^2+1)$$ Again $\zeta$ is not a root of $x^2+1$, thus it must be a root of $x^4-x^2+1$.