Let $x,u\neq 0\in \mathbb{R}^n$ suppose that $df_\epsilon(x).h=0$, this is equivalent to saying that $u+\epsilon dh(x).u=0$, we deduce that $\|u\|=\epsilon\|dh(x).u\|\leq \epsilon\|dh(x)\|\|u\|\leq \epsilon M\|u\|<\|u\|$. Contradiction, this implies that $df_\epsilon(x)$ is bijective an $f_\epsilon$ is a local homeomorphism.
Let $y$ be a point of $\mathbb{R}^n$ distinct of $x$, define $l(t)= h (x+t(y-x)), t\in [0,1]$
$\|l(1)-l(0)\|=\|h(y)-h(x)\|\leq sup_{t\in[0,1]}\|dl'\|\|x-y\|<M\|x-y\|$. Suppose that $f_\epsilon(x)=f_\epsilon(y)$, this implies that $x+\epsilon h(x)=y+\epsilon h(y)$,
we deduce that $\|x-y\|=\epsilon\|h(x)-h(y)\|<\epsilon M\|x-y\|<\|x-y\|$. Contradiction. We deduce that $f_\epsilon$ is injective.
The image of $f_\epsilon$ is open since it is a local homeomorphism. Let $x_n$ a sequence of points such that $lim_nf_\epsilon(x_n)=y$, we deducee that $f_\epsilon(x_n)$ is a Cauchy sequence: For every $c>0$, there exists $N_c$ such that $n,m>N_c$ implies that $\|f_\epsilon(x_n)-f_\epsilon(x_m)\|<c$. This is equivalent to saying that:
$\|x_n+\epsilon h(x_n)-x_m-\epsilon h(x_m)\|<c$.
We have $\|x_n+\epsilon h(x_n)-x_m-\epsilon h(x_m)\|\geq |\|x_n-x_m\| -\epsilon\|h(x_n)-h(x_m)\||\geq |\|x_n-x_m\|-\epsilon M\|x_n-x_m\||=(1-\epsilon M)\|x_n-x_m\|$. (see the argument above about $l$). This implies that $(x_n)$ is a Cauchy sequence and converges towards $x$, we have $f_\epsilon(x)=y$. We deduce that $f_\epsilon$ is surjective since its image is non empty, open and closed and $f_\epsilon$ is an homeomorphism since it is a local homeomorphism and is bijective.