The fact that $x^2 = y^2$ does not imply $x =y$ (as $x = -5$ and $y = 5$ show means that $\sqrt{k}$ means "the number $v$ so that $v^2 = k$" is not an actual well defined statement (because there isn't necessarily one number) and that it is not necessarily $\sqrt{x^2} =x$ nor that $\sqrt{x}^2 = x$.
And it doesn't follow that $\sqrt{ab} =\sqrt a \sqrt b$.
ANd just like $(-1)^2 = (1)^2 = 1$ we also have two numbers $(i)^2 = (-i)^2 = -1$.
If we go through the proof critically:
$1 = \sqrt 1$ sure that's notation. We define $\sqrt{x}$ to be one of the two values so that $v^2 = x$ and in the case of $x > 0$ we arbitrarily choose the positive one.
$\sqrt {1} = \sqrt {(-1)*(-1)}$. Sure. That's just an existential fact.
$\sqrt{(-1)}\sqrt{(-1)}$. Um. No. It is true that there is a $w$ so that $w^2 = -1$ and that therefore $(w*w)^2 = w^2w^2$ but is doesn't follow that $w$ is the one we designate as $\sqrt{-1}$ nor does it for that $w*w$ is the one we desiganta as $\sqrt{(-1)(-1)}$.