When you say "It seems to be a circular argument" you may be thinking of this:
To prove that [itex]lim_{x\rightarrow 3} 2x+ 1= 7[/itex] a typical argument goes "If [itex]|f(x)-L|= |2x+1- 7|< \epsilon[/itex] then [itex]\|2x- 6|= 2|x-3|< \epsilon[/itex] so it suffices to take [itex]|x-3|< \delta= \epsilon/2[/itex]".
That seems "circular" because we start from [itex]|f(x)-L|< \epsilon[/itex] which, by the definition of limit, is what we want to show. You are correct that that is not a formal proof- it is more like analyzing the problem to deciding HOW to write a proof- It is deciding how we should choose [itex]\delta[/itex] in order to get the result we want. A "true" proof would go the other way:
"Given [itex]\epsilon[/itex], take [itex]\delta= \epsilon/2[/itex] (which looks like the professor is picking it out of the air since the student didn't see the analysis above). Then if [itex]0< |x-3|< \delta= \epsilon/2[/itex], we have [itex]0< 2|x-3|= |2x- 6|= |2x+ 1- 7|< \epsilon[/itex]".
Typically, having done the "analysis" we don't need to write out the "true" proof because it is clear that every step in going from [itex]\epsilon[/itex] to [itex]\delta[/itex] is reversible- it's obvious that we can go from [itex]\delta[/itex] to [itex]\delta[/itex]. A "proof" where you go from the conclusion to the hypothesis by reversible steps, so that it is obvious you could go form hypothesis to conclusion, is sometimes called "synthetic proof". It's used a lot, for example, in proving trig identities.