If (and this sequence works in either direction):
##-[A(\vec{a},\lambda)A(\vec{b},\lambda)-A(\vec{a},\lambda)A(\vec{c},\lambda)]=A(\vec{a},\lambda)A(\vec{b},\lambda)[A(\vec{b},\lambda)A(\vec{c},\lambda)-1]##
Then:
##-[A(\vec{a},\lambda)A(\vec{b},\lambda)-A(\vec{a},\lambda)A(\vec{c},\lambda)]=A(\vec{a},\lambda)A(\vec{b},\lambda)[-1 + A(\vec{b},\lambda)A(\vec{c},\lambda)]##
Then:
##A(\vec{a},\lambda)A(\vec{c},\lambda)=A(\vec{a},\lambda)A(\vec{b},\lambda)[A(\vec{b},\lambda)A(\vec{c},\lambda)]##
Then we are finally saying:
##1[A(\vec{a},\lambda)A(\vec{c},\lambda)]=A(\vec{b},\lambda)A(\vec{b},\lambda)[A(\vec{a},\lambda)A(\vec{c},\lambda)]=A(\vec{a},\lambda)A(\vec{b},\lambda)[A(\vec{b},\lambda)A(\vec{c},\lambda)]##
Which I think Bell took for granted we would follow, I guess with some reference to (1) - not sure. As zonde already mentioned, ##A(\vec{b},\lambda) A(\vec{b},\lambda)## is 1 classically. The above is a relationship that should be true if ##\vec{a}, \vec{b}, \vec{c}## are all simultaneously well defined. That assumption is essentially the assumption of realism - that ##\vec{a}, \vec{b}, \vec{c}## are well-defined at all times. If they are not, it is like dividing by zero and you get results that themselves are suspect. Ergo a Bell Inequality, which does not always hold.