This is only a supplement to Eric Wofsey's answer. I think the paper needs some explanations.
Here are some prelimanaries.
Given a map differentiable map $\psi : U \to V$ between open subsets $U \subset \mathbb R^k$ and $V \subset \mathbb R^l$, we denote by $d\psi(x) : \mathbb R^k \to \mathbb R^l$ the usual derivative of $\psi$ at $x \in U$ which is a linear map represented by the Jacobian matrix. Given a smooth map $\omega : M \to N$ between smooth manifolds, we denote by $T_x\omega : T_x M \to T_{\omega(x)} N$ its derivative in the "manifold sense" which is a linear map between tangent spaces. Many authors also write $d\omega(x)$ instead of $T_x\omega$, but we want to have them distinguished at first glance.
In Definition 2.1 the author defines the concept of a diffeomorphism $f : X \to Y$ between (arbitrary) subsets $X \subset \mathbb R^k$ and $Y \subset \mathbb R^l$. It means that $f$ is a bijection and for each $x \in X$ there exists an open neigborhood $U$ of $x$ in $\mathbb R^k$ and a smooth map $F : U \to \mathbb R^l$ such that $F(\xi) = f(\xi)$ for $\xi \in U \cap X$, similarly for $f^{-1} : Y \to X$. Certainly a diffeomorphism is a homeomorphism, but its local extension will not satisfy $dF(x) \ne 0$ in general.
In Definition 2.2 he defines a subset $X \subset \mathbb R^k$ to be an $n$-dimensional manifold if every $x \in X$ is contained in a set $V \subset X$ open relative to $X$ which is diffeomorphic to an open set $U \subset R^n$. A diffeomorphism $\phi : U \to V$ is called a local parametrization of $X$ near $x$.
What does this say about $\phi$? First, it is easy to see that $\bar \phi = j \circ \phi : U \to \mathbb R^k$ must be smooth, where $j : V \to \mathbb R^k$ denotes inclusion. Second, for each $z \in U$ there exist an open $W \subset \mathbb R^k$ containing $\phi(z)$ and a smooth map $F : W \to \mathbb R^n$ such that $F \mid_{W \cap V} = \phi^{-1} \mid_{W \cap V}$. For a sufficiently small open neigborhood $W'$ of $\phi(z)$ in $W$ we get $F(W') \subset U$. Moreover, for a sufficiently small neighborhood $U'$ of $z$ in $U$ we get $\bar \phi(U') \subset W'$. This shows that $F \circ \bar \phi \mid_{U'} = id$, thus $d\bar \phi(z)$ has rank $n$. This shows that $\bar \phi$ is a smooth embedding. We conclude that $V$ is a smooth submanifold of $\mathbb R^k$ in the usual interpretation. Moreover, $\phi : U \to V$ is diffeomorphism in the manifold sense and with $z = \phi^{-1}(x)$ we have
$$(*) \quad T_z \bar \phi = T_xj \circ T_z\phi: T_z U \to T_{x} \mathbb R^k .$$
Note that $T_z\phi: T_z U \to T_xV$ is an isomorphism and $T_x j : T_xV \to T_{x} \mathbb R^k$ is a linear embedding whose image is an $n$-dimensioanal linear subspace of $T_{x} \mathbb R^k$.
Since there exists a local parametrization of $X$ near any point $x$, we see that $X$ is a smooth submanifold of $\mathbb R^k$.
In particular, there exists a "usual" tangent space $T_x X$ at $x$ which can be canonically identified with $T_x V$.
Now the author assumes that $0 \in U$ and $z= 0$. There are canonical identifications $T_0 U = \mathbb R^n$ and $T_x \mathbb R^k = \mathbb R^k$. Doing so, $T_0 \bar \phi$ is identified with the "Euclidean" derivative $\phi_0 = d \bar \phi(0): \mathbb R^n \to \mathbb R^k$ of $\bar \phi$ at $0$.
$\require{AMScd}$
\begin{CD}
\mathbb R^n @>{\phi_0}>> \mathbb R^k \\
@A{\approx}AA @A{\approx}AA \\
T_0 U @>{T_0 \bar \phi}>> T_x \mathbb R^k \end{CD}
Now $(*)$ shows that $T_xj$ identifies $T_x V$ with the linear subspace $T_0\bar \phi(T_0 U)$ of $T_x \mathbb R^k$. In other words, we get a canonical identification
$$T_x X = \phi_0(\mathbb R^n) \subset \mathbb R^k = T_x \mathbb R^k .$$
\begin{CD}
\mathbb R^n @>{\phi_0}>> \phi_0(\mathbb R^n) @>{}>> \mathbb R^k \\
@A{\approx}AA @A{\approx}AA @A{\approx}AA \\
T_0 U @>{T_0 \phi}>> T_xV @>{T_xj}>> T_x \mathbb R^k \end{CD}
$\phi_0(\mathbb R^n)$ can be understood as the "Euclidean tangent space" of the submanifold $X \subset \mathbb R^k$ at $x$. It has a nice geometric interpretation.
The tangent space $T_x M$ can be defined as the set of equivalence classes of $u : (a(u), b(u)) \to M$, where $0 \in (a(u),b(u))$ and $u(0) = x$ ("smooth curves through $x$"). The equivalence relation is given by $u \sim v$ iff they have the same derivative at $0$ with respect to any chart $\varphi : V \to W$, where $V$ is an open neigborhood of $x$ in $M$ and $W \subset \mathbb R^n$ is open. This means that $(\varphi \circ u)'(0) = (\varphi \circ v)'(0)$.
If $U \subset \mathbb R^n$ is open, then we get a canonical isomorphism $T_xU \to \mathbb R^n$ via $[u] \mapsto u'(0)$. Simply take $id_U$ as a chart around $x$.
Now the above $\bar \phi : U \to \mathbb R^l$ embeds $U$ as a the submanifold $V$ of $\mathbb R^l$. Smooth curves $u$ in $U$ through $0$ are mapped to smooth curves $\bar \phi \circ u$ in $\mathbb R^l$ through $x$ whose images are contained in $V$. The set of all $(\bar \phi \circ u)'(0)$ is nothing else than the set of (Euclidean) tangent vectors to the submanifold $V$ at $x$. The set of these vectors is precisely $\bar \phi_0(\mathbb R^k)$.
$d\bar{\phi}(0):T_{0}U \rightarrow T_{x}\mathbb{R}^{k}$, and hence $d\bar{\phi}(0)(T_{0}U) \subseteq T_{x}\mathbb{R}^{k}$. Because $T_{x}\mathbb{R}^{k}$ can be identified with $\mathbb{R}^{k}$, so can $d\bar{\phi}(0)(T_{0}U)$. The claim is then that $d\bar{\phi}(0)(T_{0}U)$ can more precisely be identified with $\phi_{0}(\mathbb{R}^{n})\subseteq \mathbb{R}^{k}$. Is this the approach? If so, are there any more details you can give to complete this step?
– Mark Jan 14 '20 at 18:17