you can do this one degree of 7 at a time. For $n^2 \equiv 1 \pmod 7,$ we have $1,6 \pmod 7.$ That is already fairly restrictive. next, we try one up, unknown $s$ with
$$ ( 1 + 7 s)^2 \equiv 1 \pmod {7^2} $$
Well,
$$ ( 1 + 7 s)^2 = 1 + 14 s + 49 s^2 \equiv 1 + 14 s \equiv 1 \pmod {7^2} $$
so that $s $ is zero, actually from $s \equiv 0 \pmod 7.$
Next, unknown $t$ with
$$ ( 6 + 7 t)^2 \equiv 1 \pmod {7^2} $$
Well,
$$ ( 6 + 7 t)^2 = 36 + 84 t + 49 t^2 \equiv 36 + 84 t\equiv 36 + 35 t \equiv 1 \pmod {7^2} $$
so that $t \equiv -1 \equiv 6 \pmod 7.$
That makes this value $6 + 7t \equiv 6 + 42 \equiv 48 \equiv -1 \pmod {7^2}$
That is, there are still just two square roots, $\pm 1 \pmod {49}$