I was going over my textbook and have trouble understanding this process:
Why does the innermost integral have the bounds $\sqrt{y}$ and $1$? The shape on the $xz$ plane looks the same as the one on the $xy$ plane so I figured that you could replace $\sqrt{y}$ with $\sqrt{z}$ in the bounds.
I did a quick calculation on my computer using $f(x,y,z)=xyz$ to check and the results were $0.0125$ and $0.02916667$ respectively. What am I missing here?

The two integrals are the same: see here and here.
As for the limits, the whole "projection" argument sounds too complicated to me. You have $$\tag1 0\leq x\leq 1, \ \ 0\leq y\leq x^2,\ \ 0\leq z\leq y. $$ If you now want $y$ to be the "independent" variable, you get $0\leq y\leq 1$. You also have, from above, that $0\leq z\leq y$. And, finally, $\sqrt y\leq x\leq 1$ from the first two sets of inequalities in $(1)$.