The near-optimality result for pretty-good measurements as given in Barnum & Knill's original paper holds only for a commuting ensemble of states, Theorem 2 in
https://arxiv.org/pdf/quant-ph/0004088.pdf
Theorem 3.10 in Watrous' book makes no such assumptions on the ensemble so it seems like a generalization of Barnum & Knill's paper.
However, I'm unable to see how equation 3.55 is obtained in the proof of this theorem.
This is in Chapter 3 of the book: https://cs.uwaterloo.ca/~watrous/TQI/TQI.3.pdf
Basically, we are given
$\rho = \sum_{a\in\Sigma} \eta (a)$,
which implies $\textrm{im}(\eta(a))\subseteq \textrm{im}(\rho)$. (I understand this bit.)
Equation 3.55 reads
$\langle \nu(a),\eta(a)\rangle = \langle \rho^{1/4}\nu(a)\rho^{1/4}, (\rho^+)^{1/4} \eta(a) (\rho^+)^{1/4} \rangle.~~~~*$
Now, the right-hand side is equal to
$\textrm{tr}\big(\nu(a)(\rho^+\rho)^{1/4} \eta(a)(\rho^+\rho)^{1/4}\big)$,
since $\rho$ commutes with its pseudo-inverse $\rho^+$.
I'm wondering how this gives the equality in equation $*$ since $\rho^+ \rho \neq \mathbb{1}$.