I was reading a book in which it is mentioned that:
Rotate coordinate axes by $45$ degrees so that a point $(x,y)$ becomes $(x+y,y-x)$ .
I can't understand how the new coordinates became $(x+y,y-x)$ . If I apply the formula for rotation of axes I'll get $\sqrt{2}$ $(x-y, x+y) $.
As noted, that transformation isn't an isometry (in the Euclidean metric); it's a $45^\circ$ rotation composed with a dilation by $\sqrt{2}$.
But then, looking at the pictures, we're not looking at Euclidean geometry - we're instead looking at the distances derived from the 1-norm $\|(x,y)\|_1=|x|+|y|$ and the $\infty$-norm $\|(x,y)\|=\max(|x|,|y|)$. From that perspective, we're just fine leaving that scale factor in so the transformation has rational coefficients. The formula for $T^{-1}$ will have factors of $\frac12$, and that's just not a big deal.
Let $T(x,y)=(x+y,y-x)$. The linked pictures say that $\|T(v)\|_{\infty}=\|v\|_1$. We also get $\|T(v)\|_1=2\|v\|_{\infty}$. Taking two steps, $T^2(x,y)=(2y,-2x)$, which doubles both norms. What this is saying is that the geometry we get from the $1$-norm and the geometry we get from the $\infty$-norm are isomorphic - because this transformation $T$ transforms one distance into the other. Using the irrational version that's an isometry in the Euclidean metric would only make things worse by introducing a factor of $\sqrt{2}$ to the distances we're looking at. Pass.