Hmmm, this is a tricky problem. But let's re-simplify the function again:
Substituting $x=\sin m$
$y=\arcsin (2\sin m \cos m)=\arcsin (\sin2m)$ all good!
However, $\arcsin (\sin2m)=2m $ not $\forall m \in \mathbb R$, but $\forall m \in [-\frac{\pi}{4},\frac{\pi}{4}]$. Here's where the domain of $y$ comes into play. The function is defined on $[-\frac{1}{\sqrt2},\frac{1}{\sqrt2}]$, so you can see for yourself that the smallest interval on which $m$ satisfies $x=\sin m$ should be $[-\frac{\pi}{2},\frac{\pi}{2}]\supset[-\frac{\pi}{4},\frac{\pi}{4}]$.
Thus, there's a mistake in your simplification process leading to two conflicting derivatives. You can't simply cancel out arcsin and sin on that interval. But, nevertheless, you can define a new function $f(x)=\arcsin(\sin(2x))$ and look for its explicit formula (it's rather easy, a piecewise one) and then have
$y=f(2m)=f(2\arcsin x)$
Then differentiate with chain rule on each piece. No problem should occur then!
$y'=f'(2\arcsin x)\cdot2(\arcsin x)'$ (And you will see f'(x) is a step function)
Same logic with $x=\cos m$ part.
Wish you understand the problem now :D