This is actually a 'standard' induction question, whose goal is to make you think about the induction hypothesis.
This is tricky because the induction is not obvious. You likely have tried applying it directly, but since
$$ \sqrt{ 2 \sqrt{3 \sqrt{\ldots \sqrt{n} } } } < \sqrt{ 2 \sqrt{3 \sqrt{\ldots \sqrt{n \sqrt{n+1}} } } }, $$
the proof fails (as seen by all the other deleted solutions).
However, this is the statement that you should induct on:
Fix $n\geq 2$. For all values of $2\leq k \leq n$, $\sqrt{ k \sqrt{(k+1) \sqrt{\ldots \sqrt{n} } } } < k+1 .$
Perform the 'induction' on k, going from $k$ to $k-1$ (as opposed to the typical induction on $n$ going from $n$ to $n+1$).
Specifically, the base case is when $k=n$. This is immediately obvious.
For the induction step, assume it is true for some $k$. Consider $k-1$. This induction is then immediately obvious since $(k-1)(k+1) < k^2$.
Of course, we now get a lot of other similar, interesting inequalities for free.
Moral: Choosing the correct induction hypothesis is extremely important.
Note: I personally call this method Stronger Induction (not a standard term in the literature). It cleverly choses the induction hypothesis based on observations, and includes strengthing (and modifying) the induction hypothesis like what Andre did.