Using the definition of convergence, we know $|x_n−l|<ϵ$ for some $ϵ>0$.
That is, sadly, not the definition for convergence and is actually a pretty serious botch.
If $x_n= \frac 1{2^n}$ then what is $\lim x_n$. Well by your definition, $0 < x_n \le 1$ so $-39 < x_n - 39 \le -38$ so $|x_n-39| < 39$. So for $\epsilon = 39$ we have $|x_n -39| < \epsilon$ so $\lim x_n = 39$.
The actual definition is that for any $\epsilon > 0$ we can find some $N$ so that whenever $n > N$ we will have $|x_n -l| < \epsilon$.
So instead of saying:
"Using the definition of convergence, we know |xn−l|<ϵ for some ϵ>0, and |zn−l|<ϵ for some ϵ>0"
we should say:
Using the definition of convergence, we know that for any $\epsilon > 0$ there are $N_1$ and $N_2$ so that for all $n > N_1$ we'd have $|x_n−l|<ϵ$, and for all $n > N_2$ we'd have $ |z_n−l|<ϵ $. ANd for all $n > \max(N_1, N_2)$ we'd have both $|x_n - l|< \epsilon$ and $|z_n -l|< \epsilon$.
Now you claim that $|x_n-l|< e$ and $|z_n-l| < e$ implies $|x_n-1|-|z_n-l| < e-e$. This is utterly wrong. Negatives flip the inequalities so $-|z_n - l| > -\epsilon$. And if you have $|x_n-1|$ is less then $\epsilon$. And $-|z_n-l| > -\epsilon$ you can't say any thing about how they combine.
For example $4 < 5$ and $1 < 4$ so $4- 1 < 5-4$. Really?
But what you can say is $|x_n -l| + |z_n-l| < \epsilon + \epsilon$.
The you claim that $|x_n-l| - |z_n -l| = |(x_n -l)-(z_n-1)|$. You can not combine absolute values that way. Consider $|5|-|-3| = 5 - 3 =2$ and $|(5)-(-3)| = |5+3| = 8$.
What you need to do is use addition and the triangle inequality: $|a-b| + |b-c| \ge |a-c|$.
so $|(x_n-l)+ (l- z_n)| \le |x_n-l|+|z_n - 1| < \epsilon + \epsilon = 2\epsilon$.
How do we put this all together?
........
We want to find an $\mathscr N$ so that for all $n >\mathscr N$ we have $|y_n - l|\epsilon$.
And we know we can talk about $|z_n - l|$ and $|y_n - l|$.
So $|y_n - l|= |(y_n - x_n) +(x_n -l)| \le |(y_n-x_n)| + |x_n-l| \le |(z_n - x_n)| + |x_n-l|=$
$|(z_n-l) + (l-x_n)| + |x_n-l| \le |z_n-l| + |x_n-l| + |x_n-l|$.
Now we can "trap " the $z_n, x_n$ close to $l$.
Now $\frac \epsilon 3 > 0$ so there are $N_1$, and $N_2$ so that if $n> \max(N_1, N_2)$the we have $|z_n -l| < \frac \epsilon 3$ and $|x_n -l|<\frac \epsilon 3$.
SO $|y_n -l| \le |z_n-l| + |x_n-l| + |x_n-l|<3\frac \epsilon 3 = \epsilon$.