The question is about a sequence defined by
$\,a_0 = 1\,$ and for $\,n\ge 0\,$
$$ a_{n+1} = \frac{1+\sqrt{4{a_n}^2+1}}2. \tag{1} $$
You asked
how do we get an explicit formula for $a_n$? Is there a simpler way to derive the approximation?
I doubt very much that there is a closed form expression
for $\,a_n\,$ so that is not going to help. However, there
is a simple way to approximate it. Define the function
$$ f(x) := \frac{1+\sqrt{4x^2+1}}2 = \frac12 +
|x| \sqrt{1+\frac1{4x^2}}. \tag{2} $$
Use the approximation $\, \sqrt{1+x} \approx 1 + \frac{x}2,\,$
good for $\,0<x<\!\!<1\,$ and the recursion equation $(1)$
to get that
$$ a_{n+1} \approx \frac12 +
a_n \left(1 + \frac1{8a_n^2}\right) = a_n + \frac12 +
\frac1{8a_n}. \tag{3} \,$$
The first two terms of this approximation leads to
$\, a_n \approx \frac12 n + c\,$ for some constant $\,c.\,$
Substitute this back into the approximation and use the known
Harmonic series
approximation to improve the approximation to
$\, a_n \approx \frac12 n + \frac14\log(n) + c\,$ for some
other constant $\,c.\,$ It is possible to do better, though.
Similar questions such as
MSE question 2861768
suggest the following approach.
Define, for some constant $\,c_0\,$ yet to be determined, the variables
$$x := 1/(n+c_0),\qquad y := \log(x). \tag{4} $$
Consider an Laurent series Ansatz
$$ a_n = f(x) := c_1 x^{-1} + (c_2+c_3y) +
(c_4+c_5y+c_6y^2)x^1 + \dots \tag{5} $$
where $\,c_1,c_2,\dots\,$ are more constants to be determined.
Substitute equation $(5)$ in the recursion equation $(1)$
and solve for the constants. The result is
$$ f(x) = \frac12 x^{-1} + (-y)\frac14 + (-y)\frac{x}8 +
(1-6y-3y^2)\frac{x^2}{96} + \dots\,. \tag{6} $$
Substitute equation $(4)$ into equation $(6)$
with $\,c_0 \approx 1.6464707$ to get
$$ a_n \approx b_n := \frac1{2x} -
\frac{y}4 \left(1+\frac{x}2\right). \tag{7} $$
As a check, here is a small table of sequence values:
$$\begin{array}{|c|c|c|} \hline
n & a_n & b_n \\ \hline
1 & 1.6180340 & 1.6125102 \\ \hline
2 & 2.1935271 & 2.1910250 \\ \hline
3 & 2.7497913 & 2.7485869 \\ \hline
4 & 3.2948797 & 3.2943141 \\ \hline
5 & 3.8326014 & 3.8323789 \\ \hline
\end{array}$$