This comes theorem 17.1 of commutative ring theory by Matsumura:
It is easy to see that if $\text{Ext}^i_A(N_j/N_{j+1},M)=0$ for each $j$ then $\text{Ext}^i_A(N,M)=0$...
I am not very familiar with identities of the Ext functor, why is this easy to see?

From the short exact sequence $$0\to N_1/N_2\to N_0/N_2\to N_0/N_1\to0$$ we get a long exact sequence $$ \cdots\to\text{Ext}_A^i(N_0/N_1,M) \to\text{Ext}_A^i(N_0/N_2,M) \to\text{Ext}_A^i(N_1/N_2,M)\to\cdots$$ and as the outer groups here are zero, so is the inner term. One now proves $\text{Ext}_A^i(N_0/N_3,M)=0$ etc.