Let $k$ be a finite field of characteristic $p\neq 2$ (in fact, one only needs to consider the case $p\in\{3,5\}$), let $\Sigma$ be a finite set of primes containing $\infty$ and $p$, and
$$\rho_{0}:{\rm Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})\rightarrow {\rm GL}_{2}(k)$$
an absolutely irreducible representation, meaning $\rho_{0}\otimes\overline{k}$ cannot be written as the direct sum of two one-dimensional subrepresentations, where $\mathbb{Q}_{\Sigma}$ is the largest Galois extension of $\mathbb{Q}$ unramified outside the primes in $\Sigma$. Assume that if $\tau\in\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})$ is complex conjugation, then $\det(\rho_{0}(\tau))=-1$. Then $\rho$ induces a projective representation
$$\tilde{\rho}_{0}:\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})\longrightarrow\operatorname{PGL}_{2}(k).$$
Assume this projective representation has dihedral image, meaning $$\operatorname{image}(\tilde{\rho}_{0})\cong\left<s,r\mid s^{2}=r^{m}=(sr)^{2}=1\right>$$ for some $m\in\mathbb{N}$, and assume further that $\rho_{0}|_{\mathbb{Q}(\sqrt{(-1)^{\frac{p-1}{2}}p})}$ is absolutely irreducible.
The action of $\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})$ on $k^{2}$ induces an action on $V_{\lambda}=\operatorname{Hom}(k^{2},k^{2})$, namely by conjugation. (What that $\lambda$ stands for is of no significance here.) Since $p\neq 2$, one has a direct sum of $k[\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})]$-modules
$$V_{\lambda}=W_{\lambda}\oplus k\text{,}$$
where $W_{\lambda}$ denotes the space of $\operatorname{trace}$-$0$ matrices and $k$ is the space of scalar multiplications.
Let $K_{1}$ be the splitting field of $\rho_{0}$ (i.e. $\operatorname{Gal}(\mathbb{Q}_{\Sigma}/K_{1})=\operatorname{ker}(\rho_{0})$), and $$G:=\operatorname{Gal}(K_{1}/\mathbb{Q})=\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})/\operatorname{ker}(\rho_{0})=\operatorname{image}(\rho_{0}).$$
Since $\overline{\rho}_{0}$ has dihedral image, $\rho_{0}\otimes\overline{k}=\operatorname{Ind}_{H}^{G}(\chi)$ for some character $\chi$.
Question: Wiles now makes the following claims.
(1.) Under the above conditions, $W_{\lambda}\otimes\overline{k}=\delta\otimes\operatorname{Ind}_{H}^{G}(\chi/\chi')$ where $\chi'$ is the quadratic twist of $\chi$ by any element of $G\setminus H$ and $\delta$ is the quadratic character $G\longrightarrow G/H$ (what does that even mean - $W_{\lambda}\otimes\overline{k}$ decomposes as a quadratic character + something else?)
(2.) since $M(\zeta_{p^{n}})$ is Abelian over $\mathbb{Q}$, where $\mathbb{Q}\subseteq M\subseteq K_{1}$ such that $G/H=\operatorname{Gal}(M/\mathbb{Q})$, one always finds for any $n\in\mathbb{N}$ an $x\in\operatorname{Gal}(\overline{\mathbb{Q}}/\mathbb{Q})$ which fixes $\mathbb{Q}(\zeta_{p^{n}})$ and $\tilde{\rho}_{0}(x)\neq 1$ as long as $m\neq 2$ (i.e. $\operatorname{image}(\rho_{0})\neq\mathbb{Z}/2\times\mathbb{Z}/2$).
Why is that the case? Maybe I'm not seeing the wood for all the trees here, but who knows. EDIT: Also, should it not be $\operatorname{Gal}(\mathbb{Q}_{\Sigma}/\mathbb{Q})$ instead of $\operatorname{Gal}(\overline{\mathbb{Q}}/\mathbb{Q})$?