In general, if $W$ is a f.d. vector space and $P_V\colon W \to W$ is a projection map with image $V\subset W$ and kernel $U$, then $W \cong U \oplus V$ and the map $P_U+P_V = \text{id}_W$ (where $P_U\colon W \to W$ is the projection map with image $U$).
In this case, take $L = d(\iota_X\circ \pi_X)_{(p,q)}$.
Show $L$ is a projection map ($L\circ L = L$).
What is the image of $L$?
What is the kernel of $L$?
What map appearing in your question above is a formula for projection onto the kernel of $L$?
If you can answer these questions, you will have a nice answer to the problem.
Update: here are some extra details:
We can use properties of pushforward and the fact that $\pi_X\circ \iota_X = \text{id}_X$ to show that
$$ L\circ L = d(\iota_X\circ \pi_X)_{(p,q)}\circ d(\iota_X\circ \pi_X)_{(p,q)} = d(\iota_X\circ (\pi_X\circ \iota_X)\circ \pi_X)_{(p,q)} = d(\iota_X\circ \pi_X)_{(p,q)} = L$$
so $L$ is a projection map.
The image of $d(\iota_X\circ \pi_X)_{(p,q)}$ is the subspace $V = T_{(p,q)}X\times \{q\}$, the tangent space at $(p,q)$ of the submanifold $X\times \{q\}$. In short, the image of this map is the set of tangent vectors at $(p,q)$ to paths of the form:
$$ \iota_X\circ \pi_x\circ \gamma: \mathbb{R} \to X\times Y$$
where $\gamma$ is a path in $X\times Y$ with $\gamma(0) = (p,q)$. Such a $\gamma$ can be written as $\gamma(t) = (\gamma_1(t),\gamma_2(t))$ for $\gamma_1\colon \mathbb{R}\to X$ and $\gamma_2\colon \mathbb{R}\to Y$. You should verify that
$$\iota_X\circ \pi_x\circ \gamma(t) = (\gamma_1(t),q)$$
Thus the image of $d(\iota_X\circ \pi_X)_{(p,q)}$ is the set of vectors in
$T_{(p,q)}X\times Y$ that can be written in the form
$$d(\iota_X\circ \pi_X)_{(p,q)}\gamma'(0) = \frac{d}{dt}|_{t=0}(\gamma_1(t),q) = (\gamma_1'(0),0)$$
which is the desired tangent space.
The kernel of $d(\iota_X\circ \pi_X)_{(p,q)}$ is the subspace $U = T_{(p,q)}\{p\}\times Y$. I leave the justification to you.
- So which map above gives projection onto $U$? It's $d(\iota_Y\circ \pi_Y)_{(p,q)}$. The proof is similar to items 1. and 2. above. In particular, this map is NOT the identity map.