In the valuative criterion, you need a morphism $\mathrm{Spec}(R)\to Y$. In the affine $Y$ case, this means $R$ must be an $A$-algebra.
Write $\mathbb P^n_A=\mathrm{Proj}A[T_0, \dots, T_n]$.
A rational point $x\in \mathbb P^n_A(K)$ can be represented by homogeneous coordinates $(t_0, t_1, \dots, t_n)$ with $t_i\in K$ and at least one of them is non-zero. Multiplying them by a suitable element of $R$, which does not change the point $x$, one can suppose that all $t_i\in R$ and at least one of them, say $t_0$, belongs to $R^*$ (units of $R$).
Consider the morphism $\bar{x} : \mathrm{Spec}(R)\to D_+(T_0)\subset \mathbb P^n_A$ defined by
$$ O(D_+(T_0)) = A\left[\frac{T_1}{T_0}, \dots, \frac{T_n}{T_0}\right]\to R, \quad \frac{T_i}{T_0}\mapsto \frac{t_i}{t_0}.$$
Then it is easy to see that $\bar{x}$ extends $x$.
The uniqueness of the extension comes from the fact that the projective space is separated. One can also check directly as above using coordinates (if $\bar{x}'$ is another extension, suppose for instance that it maps the closed point to some point of $D_+(T_0)$, then show that $t_i/t_0\in R$ and $\bar{x}'=\bar{x}$.)