#16 is just the definition of the dot product on ##\mathbb R^3##. It doesn't have a lot to do with this.
Let's consider a simpler problem. Suppose that ##\{u,v\}## is an orthonormal basis for ##\mathbb R^2##. Then what is ##u\cdot(u+v)##? Obivously, we have
$$u\cdot (u+v)=u\cdot u+u\cdot v=1+0=1.$$ Our objection is that since your calculation doesn't have any terms like ##u\cdot v##, we can't see if you used the properties of the dot product correctly.
What you're doing is like writing the above as
$$u\cdot (u+v)=u\cdot u.$$ This looks strange, because if we haven't yet used (any part of) the orthonormality of the set {u,v}, the result is ##u\cdot u+u\cdot v##, and if we have used the orthonormality, we can write the result as 1+0.
It looks a lot better if you use only the properties of the dot product in the first step, and then use the orthonormality in the second. What you did in the first step was (I hope) to use the properties of the dot product, and that B is an orthogonal set (while not using the other aspect of orthonormality). This isn't wrong, but it hides the fact that you understand what you're doing.
It would have been OK if you had added a comment like this: "In step 1, I'm using the properties of the dot product, and that B is an orthogonal set. In step 2, I'm using that the members of B are unit vectors."