When solving an inequality with square roots like this, extraneous solutions should be expected. You have already clearly solved this, so I will not recreate all of that, but I know exactly what you did, so I will sketch that and the proper logic for the record.
Before solving this you set the bounds for the radicals themselves:
$$8x-7 \geq 0 \wedge 2x+2 \geq 0 \Rightarrow x \geq \frac{7}{8} \wedge x \geq -1 \Rightarrow x \geq \frac{7}{8}.$$
Ok good, one lower boundary. Next you solved the equation, and I am quite sure you squared both sides of an inequality twice. In the end you had
$$(x-7)(x-1)>0.$$
Your thinking here should have been that the product of two binomials being positive implies that they are either both positive, or they are both negative.
$$(x-7)(x-1)>0 \Rightarrow \left((x-7)>0 \wedge (x-1)>0\right) \vee \left((x-7)<0 \wedge (x-1)<0\right).$$
So if both binomials are positive you conclude
$$(x-7)>0 \wedge (x-1)>0 \Rightarrow x>7 \wedge x>1 \Rightarrow x>7.$$
If both are negative you conclude
$$(x-7)<0 \wedge (x-1)<0 \Rightarrow x<7 \wedge x<1 \Rightarrow x<1.$$
So you not only need to test the conditions $x>7$ and $x<1$, but you should expect extraneous solutions as a result of squaring square roots twice. Clearly as you noted $x \ngtr 7$, but $x <1$ works. You combine this with your initial lower bound $x \geq \frac{7}{8}$ to conclude as you have that
$$\frac{7}{8} \leq x < 1.$$
So to precisely answer your question, knowing precisely what you experienced, your calculations were correct, and yes you can and should cancel a part of your solution as it is not actually a solution. It is just an extraneous result of repeated squaring on square roots.