Based on Definition 2.6.2 the Proposition is false if the morphisms of the category of locally compact Hausdorff spaces are understood as the maps which are continuous at infinity.
There are two ways to correct it:
- The assignment $X \mapsto X^+$ defines a covariant functor from the category of locally compact Hausdorff spaces and maps which are continuous at infinity to the category of compact Hausdorff spaces.
Here no basepoints are involved, one does not require that the extension $\phi^+$ of $\phi : X \to Y$ satisfies $\phi^+(\infty_X) = \infty_Y$.
- The assignment $X \mapsto (X^+,\infty_X)$ defines a covariant functor from the category of locally compact Hausdorff spaces and proper maps to the category of pointed compact Hausdorff spaces.
See Is one point compactification functorial?
The problem with the orginal Proposition is that there are maps which are continuous at infinity but not proper (for example constant maps), though of course proper maps are continuous at infinity.
Remark.
The author's intention is to extend a map $\phi : X \to Y$ to a continuous $\phi^+ : X^+ \to Y^+$ such that $\phi^+(\infty_X) = \infty_Y$. This works if and only if $\phi$ is proper.
Note that if $X$ is compact, then all maps $\phi : X \to Y$ are proper and thus can be extended via $\phi^+(\infty_X) = \infty_Y$. However, in this case there are more continuous extensions of $\phi$. In fact, $\infty_X$ (which ís an isolated point of $X^+$) can be mapped to any $y \in Y$. But these additional extensions are irrelevant for the purpose of finding a functor.
In 1. the only case in which $\phi^+(\infty_X) = \infty_Y$ cannot be achieved is when $\phi$ is continuous at infinity, but not proper. Here we have $\phi^+(\infty_X) \in Y$. Recall that for compact $X$ there are no non-proper $\phi$.