This is an excerpt from a proof of a theorem.
Theorem 48.5 Suppose $X$ is a topological space and $(Y,d)$ is a metric space. Let $f_n:X\to Y$ be a series of continuous functions, and $f$ be its point-wise limit. If $X$ is a Baire space, there the points where $f$ is continuous are dense in $X$.
Proof. Given positive integer $N$ and $\epsilon > 0$, define $$ A_N(\epsilon) = \{x|d(f_n(x), f_m(x))\le\epsilon \textrm{ for all } n, m\ge N\}$$
Fix $\epsilon$, observe that $A_1(\epsilon)\subset A_2(\epsilon)\subset\cdots$. Now $X$ is the union of all of them. Observe that given $x_0\in X$, $x_0\in A_n(\epsilon)$ for a certain $N$.
Now, let $$U(\epsilon)=\bigcup_{N\in\mathbb Z_+} \mathrm{Int}A_N(\epsilon)$$ We will show that
$U(\epsilon)$ is a dense open set in $X$
[...]
To show that $U(\epsilon)$ is a dense open set in $X$, we must show that given a nonempty open subset (denote $V$) of $X$, there exists an $V\cap \mathrm{Int}A_N(\epsilon) $ that is nonempty. For this, observe that for all $N$, $V\cap A_N(\epsilon) $ is closed. Because $V$ is an open subspace of $X$, $V$ is a Baire space. So, there exists at least one set (denote $V\cap A_M(\epsilon) $) such that it contains a nonempty open subset of $V$. (Call that open subset $W$.) Since $V$ is open in $X$, $W$ is open in $X$ as well. Therefore, it is included in $V\cap \mathrm{Int}A_M(\epsilon) $.
[...](proof of 2.)
I have difficulty understanding the highlighted line. It does not resemble to either the presumption or the conclusion of being a Baire space. How is it being deducted?
With the changes, I can figure it out, now.