The quotient identifies unitary operators differing by a scalar phase. A continuous projective unitary representation takes values in this quotient, with the quotient of the strong operator topology. A local continuous section fixes the phase by requiring a chosen nonzero matrix coefficient to be positive real.
The pullback of along a continuous circle homomorphism is a compact central extension of the circle. Its lifts commute: a scalar commutator is a continuous alternating bicharacter, which vanishes on a dense cyclic subgroup and hence everywhere. Average a rank-one positive operator over this compact extension. The resulting nonzero compact operator has a finite-dimensional invariant eigenspace, and commuting unitaries have a common eigenvector there. Its continuous character has central weight one; dividing the lifts by that character yields an honest continuous circle representation.
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