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Interpret the requested measurement as distinguishing all four stated orthogonal eigenstates, hence as their rank-one projective measurement. If they have indistinguishable degenerate eigenvalues, this assumption need not hold; the identity observable, for example, cannot reveal the basis and gives no contradiction.

Let Bob initially prepare $|0{⟩}_B$. Alice encodes a bit by preparing $|0{⟩}_A$ or $|1{⟩}_A$, without changing Bob's initial reduced density matrix. If Alice prepares zero, the global input is the first eigenstate, so nondemolition leaves Bob in $|0⟩$ with certainty. If Alice prepares one, the rank-one Lüders rule, after discarding the outcome, dephases Bob in the rotated basisHis output is ${\rho }_B={\cos }^2\theta |u⟩⟨u|+{\sin }^2\theta |v⟩⟨v|$. A computational-basis measurement then givesIt is positive for every $0<\theta \le \pi /4$. Repeating the experiment would transmit Alice's choice across a spacelike interval, violating quantum no-signalling. The controlled-basis measurement causality obstruction therefore excludes the entire nonzero interval, including $\pi /4$.

At $\theta =0$, the basis is the computational product basis, up to an irrelevant sign on the fourth vector. Alice and Bob each measure $Z$ locally, then compare their results later. Each product eigenstate is preserved. Thus being a product basis is insufficient for an instantaneous quantum nondemolition measurement: a remote party's choice of which local basis is measured can still cause signalling.