[Rewritten answer.]
A crucial thing to know is that all elements $z \in K_v$ such that
$$v(z-1) \ge 2v(2)+1$$
(which simplifies to $v(z-1) \ge 1$ if $v$ lies above an odd prime $\ell$) are squares.
One can see this with $\ell$-adic logarithms, or with expansion of the binomial series $(1+y)^{1/2}$ ($y:=z-1$). But it is also a straightforward application of Hensel's Lemma: For the case $\ell$ odd the standard version suffices; for the case that $v$ lies over $\ell=2$ one can use the general version of Hensel's Lemma from here, cf. section 4 and 8 here. (The condition $v(z-1) \ge 2v(2)+1$ is the additively rewritten $\lvert f(1) \rvert <\lvert f'(1)\rvert^2$ for $f(T) = T^2-z$.)
Now we introduce that element $p$ which at least satisfies $v(p)\ge 0$. We can certainly find many $x$ (namely, $v(x) < $ ? -- for most $v$, $\le -1$ will suffice here) such that $v(p/x^4) \ge 2v(2)+1$ and hence, per reuns' hint in the comment:
then $x^4-p = x^4(1-p/x^4)$ is a square
which should allow you to finish. It means that all such $x$ will give a $y$.