This question is from K&K's intro book on mechanics. The larger block with the quarter circle missing has mass $M$ and the smaller block has mass $m$. The goal is to find the speed $v$ of the smaller block as it leaves the larger block. There is no friction anywhere. The tricky part here is that there is a recoil of the larger block due to the normal force from the smaller block. I am lost as to how to get to the solution.
Resources online give this equation: $$mgR=\frac{1}{2}mv^2+\frac{1}{2}MV^2$$ where $V$ is the speed of the larger block after the smaller block loses contact. I do not see where this equation comes from. It seems to suggest that the mechanical energy of the system is conserved.
I understand that in the frame of the small block, we have that $mgR=\frac{1}{2}mv^2$ But if $$mgR=\frac{1}{2}mv^2+\frac{1}{2}MV^2$$ is also true then $$\frac{1}{2}MV^2=0$$ That is, that the larger block garnered no speed due to the smaller block; which certainly is not the case.
My guess as to why $mgR=\frac{1}{2}mv^2$ is invalid is, since the larger block recoiled, the smaller blocks displacement vector was not truly perpendicular to the normal force. Thus the normal force (nonconservative?) did some work on the small block.
My main question is in the title but it is mostly this: How do we know $$mgR=\frac{1}{2}mv^2+\frac{1}{2}MV^2$$ is true in this case?
I appreciate the help.