I'm sorry, I didn't notice that. Looking back at your computation at the last line of (i), You have ##V \psi## and expand to have ##X## in the upper block. But ##X## is an off-diagonal block of ##V##, so it should appear in the lower SU(2) block in that part of the computation
If you look at certain references, a ##c## index is used to indicate the right-handed fields. I am using ##a,b,c## for SU(3) color indices, so I used ##R## to label the RH fields.
Let me review my index conventions. ##i,j,\ldots = 1,2,3,4,5## are SU(5) indices. ##a,b,\ldots=1,2,3## are SU(3) color and ##\alpha,\beta=1,2## are SU(2) weak isospin labels. The way we're parameterizing the upper blocks as color, ##i=1,2,3## are the same as ##a=1,2,3##, while ##i=4,5## are identified with ##\alpha=1,2##. I think this convention is less confusing than making ##\alpha,\beta =4,5##, but it doesn't take some time to get comfortable with.
When I wrote (1), I used the fact that ##X,Y## are the off-diagonal blocks of the SU(5) gauge field so they have one ##a## color index and one ##\alpha## weak index. Then we see that the upper block on ##\psi_i## gets paired by ##X## with the lower block on the conjugate.
I am replacing a sum on ##i## with a pair of sums: one over the color part ##a## and a second over the weak part ##\alpha##. So ##A^i B_i = A^a B_a + A^\alpha B_\alpha## with my conventions.