That's a fairly clever argument. It's important to point out that it isn't a proof that all solutions of the equation of motion are described by ellipses, but it does show that some ellipse-shaped trajectories are solutions to those equations. The precise claim that's being proved is this one:
The trajectory $(r(t),\theta(t))$ defined by
\begin{align}
r(t) & = \frac{a(1-\epsilon^2)}{1+\epsilon\cos(\theta(t))},
\tag 1
\end{align}
where $\theta(t)$ is fixed by the requirement that it be a solution to the ODE*
$$
\dot\theta(t)
=
\frac{L}{mr(t)^2}
=
\frac{L}{ma^2(1-\epsilon^2)^2}
\big(1+\epsilon\cos(\theta(t))\big)^2,
\tag 2
$$
is a solution to the equation of motion
$$
\ddot r(t) - r \dot\theta(t)^2 = -\frac{GM}{r}
\tag 3
$$
so long as the constants $L$, $a$, $\epsilon$ and $GM$ satisfy the relationship $L^2 = GMm^2 a^2(1-\epsilon^2)$.
As always when you're trying to prove a statement of the form "the function $f$ is a solution to the differential equation $X$", the proof of the claim above is an exercise in differentiation: you take your function, differentiate it a bunch of times in appropriate ways, you plug those into the differential equation, and you verify that it is satisfied.
Along the route of that differentiation, you use the fact that $\theta(t)$ is a solution to the ODE in $(2)$ several times. Since that ODE is the flesh and bones of angular momentum conservation, this means that insofar as your question asks
where in the argument is the conservation of angular momentum used,
the answer is: all over the place. None of the proof makes sense without it, and it does not just reduce to the simple numerical relationship $L^2 = GMm^2 a^2(1-\epsilon^2)$ between the constants that's obtained at the end, which is a very minor part of the argument.
If you want to see why this is the case, you should repeat the whole argument without assuming that the angular momentum is conserved: that is, when you substitute for $\dot\theta(t)$, you should do so as
$$
\dot\theta(t) = \frac{L(t)}{mr(t)^2},
$$
with a time-dependent angular momentum, and then when it comes time to differentiate again, you should include the correct product-rule term with the time derivative $\dot L(t)$. When you get to the end and you try to show that your solution satisfies the EOM, you'll be pulled short, since you don't know anything about $L(t)$ or its time derivative $\dot L(t)$, and you won't be able to say anything at all about the relationship between your function and the EOM.
Hopefully this helps clarify the structure of the argument.
*you might wonder, at this point, why this argument uses such a cumbersome definition for $\theta(t)$. The reason is, basically, that the ODE $(2)$ cannot be solved exactly: if I understand correctly, it can be 'reduced to quadratures' (i.e. you can express the inverse of $\theta(t)$, often denoted $t(\theta)$ as an integral of a certain elementary functions) but that integral cannot be done analytically, and it cannot be inverted. So, that procedure shows that the function exists, it's just too cumbersome to write down.