In answering a previous post of mine, Henning Makholm showed that the theory, $K$, of the real number system* has a consistent extension, $K'$, with a function symbol, $^{-1}$, satisfying $$ \begin{alignat}{3} &\vdash_{K'} x &&\neq 0 \implies x\cdot x^{-1} = 1 \tag{1}\label{a} \\ &\vdash_{K'} 0^{-1} &&= 1 \tag{2}\label{b} \end{alignat} $$
My question now is this: Is this extension conservative? My feeling is that it is, but I don't know how to prove it.
If $K'$ was not stipulated to satisfy \eqref{b}, but only \eqref{a}, then $K'$'s conservativity would follow from The Conservativity Theorem (for a proof, see [2] Proposition 2.28, pp. 102-103 (link)). It is the added stipulation \eqref{b} that throws me for the loop.
Footnotes
* $K$ is a second-order theory with equality with constants $0,1$, with binary function symbols $+,\cdot$, and with unary predicate symbol $\mathbb{R}_+$, that has for axioms: (1) the field axioms, (2) the order axioms, and (3) the completeness axiom (it is this axiom that requires second-order rather than first-order logic), as described on pp. 13 and 14 of [1] (link).
References
[1] Dipak Chatterjee (2012). Real Analysis (2nd ed.) PHI Learning.
[2] Elliott Mendelson (2015). Introduction to Mathematical Logic (6th ed.) CRC Press.