 Solution

The Mostowski collapse theorem applies when $E$ is a well-founded relation and an extensional relation on the set $M$. Extensionality here means that different points have different sets of $E$-predecessors. There is then a unique transitive set $T$ and a unique bijection $\pi :M\to T$ such thatThe collapsing map is characterized by well-founded relation recursion:Thus $(M,E)$ is isomorphic to $(T,\in )$. Both well-foundedness and extensionality are hypotheses of the theorem; well-foundedness alone does not make the recursive map injective.