 Solution

The structure $H_{\kappa }$ of hereditarily small sets is transitive. If $\kappa \le \omega$, all its sets are hereditarily finite, so it cannot satisfy Infinity. Therefore the assumed model has $\kappa >\omega$.

Let $\mu <\kappa$ be a cardinal. The ordinal $\mu$ belongs to $H_{\kappa }$, and every actual subset of $\mu$ also belongs to $H_{\kappa }$: its transitive closure has size at most $\max (\mu ,\omega )<\kappa$. The Power set axiom inside $H_{\kappa }$ therefore produces the actual $\mathcal{P}(\mu )$, since all subsets relevant to the internal definition are present. This power set itself belongs to $H_{\kappa }$, soThus $\kappa$ is a strong limit. Its regularity was assumed, and we have proved uncountability. Hence $\kappa$ is strongly inaccessible.