Consider the effect of a continuous movement of $A_1,A_2$ to $B_1,B_2$, keeping the points on the circumcircle and maintaining tangency with the incircle. Let $A_1A_2$ be tangential at $P_1$ and let $B_1B_2$ be tangential at $P_2$.
Let line $P_1P_2$ cut $A_1B_1$ at $Q_1$ and cut $A_2B_2$ at $Q_2$. Then $A_1B_1$ and $A_2B_2$ are equally inclined to line $Q_1Q_2$ and so there is a circle $\mathscr{C}$ tangential at $Q_1$ and $Q_2$ to the lines $A_1B_1$ and $A_2B_2$.
Let the line $Q_1Q_2$ make successive angles $p,q,q,p$ with the four tangents at $Q_1,P_1,P_2,Q_2$. Then, applying the sine rule, the ratio of the powers of each of $A_1,A_2,B_1,B_2$ with respect to the two circles is $$\frac {\sin q}{\sin p}\text{, a constant}.$$
The circumcircle, through these four points, is therefore coaxal with $\mathscr{C}$ and the incircle.
Similarly, we can determine a further coaxal circle, $\mathscr{C'}$, for the movement of $A_2,A_3$ to $B_2,B_3$. The coaxal circles $\mathscr{C}$ and $\mathscr{C'}$ have a common tangent, $A_2B_2$ and so are either equal or on opposite side of the radical axis of the system but the latter possibility is impossible by continuity.
We can now apply the same idea to the movement of $A_1,A_3$ to $B_1,B_3$ with respect to the circumcircle and $\mathscr{C}$. Then $A_1A_3$ and $B_1B_3$ are both tangential to a further coaxal circle $\mathscr{D}$.
We can now consider successive moves of each $A_i$ to $A_{i+1}$, considering the indices modulo $5$.Then each edge $A_iA_{i+2}$ is tangential to $\mathscr{D}$ and so the incentre of the pentagon is the coaxal circle $\mathscr{D}$.