Below I explain how nonmodular inductive proofs (e.g. other answers) are really just applications of modular arithmetic product rules. Let's examine closely the inductive step (which is usually presented unmotivated - pulled out of a hat like magic). Below we present the inductive proof in a way that makes it crystal clear how it is a special case of the following general product rules, viz. specialize: $\,\rm X=7^{2n+1},\,\color{#c00}{x=-1},\ \color{#0a0}{Y=7^2},\,y=1\,$ below.
$\qquad\qquad\quad\! 8\mid \overbrace{(7^{\large 2n+1}\!+1)}^{\large\rm P(n)},\quad\ 8\mid (7^{\large 2} - 1)$
$\qquad\: \Longrightarrow\ \ 8\mid (7^{\large 2n+1}\!+\color{#c00}1)\,\color{#0a0}{7^{\large 2}}\color{#c00}{-1}\,(\color{#0a0}{7^{\large 2}}-1)\, =\, \smash{\overbrace{7^{\large 2n+3}-1}^{\large\rm P(n+1)}}\ \ $ is a special case of Proof below
$\begin{eqnarray}
\rm {\bf Lemma}\ \ &\rm m\ \ |&\rm\ \, X\!-\!x\quad\ \& &&\rm\! m\ |\: Y\!-\!y \ \Rightarrow\ m\:|\!\!&&\rm XY - \: xy\ \ \ \, {\bf [Divisibility\ Product\ Rule]} \\[.3em]
\rm {\bf Proof}\ \ \ \ \ &\rm m\ \ |&\rm (X\!-\!\color{#c00}x)\:\color{#0a0}Y\ \,+ &&\rm\, \color{#c00}x\ (\color{#0a0}Y\!-\!y)\ \ \ \ = &&\rm XY - \: xy \\[.5em]
\rm {\bf Lemma}\ \ & &\rm\ \, X\equiv x\quad\ \ \& &&\rm\quad\ Y\equiv y \ \ \ \ \Rightarrow\ &&\rm XY\equiv xy \ \ \ \, {\bf [Congruence\ Product\ Rule]}\\[.3em]
\rm {\bf Proof}\ \ \ \ \ &0\equiv& \rm (X\!-\!\color{#c00}x)\:\color{#0a0}Y\,\ + &&\rm\, \color{#C00}x\ (\color{#0a0}Y\!-\!y)\ \ \ \ \equiv &&\rm XY - \: xy \\
\end{eqnarray}$
If congruences are known, the inductive step is obvious by applying said Congruence Product Rule
$$\begin{align} \bmod 8\!:\ \ \ \ \ \color{#c00}{7^{\large 2n+1}}&\equiv\color{#c00}{-1}\\[.2em]
\color{#0a0}{7^{\large 2}}&\equiv\ \color{#0a0}1\\[.2em]
\Longrightarrow\, 7^{\large 2n+3}= \color{#c00}{7^{\large 2n+1}}\color{#0a0}{ 7^{\large 2}}&\equiv\ \color{#0a0}{1}\:\!\color{#c00}{(-1)}\end{align}\qquad\qquad$$
If congruences are not known then we can still preserve this conceptual structure by rewriting the congruence product rule into lower-level divisibility language, cf. above divisibility product rule.
In either case - to preserve the conceptual structure - we should invoke these rules by name, since instead invoking them by value (i.e. repeating the product rule proofs in this special case) greatly obfuscates the crucial innate arithmetical product structure at the heart of the inductive step.
Thus, with the help of modular language, we see that the induction boils down to the trivial induction that $\, a\equiv 1\,\Rightarrow\, a^n\equiv 1\:\!$ (here $\,\color{#0a0}{a = 7^2}).\,$ Or, $\,7\equiv -1\,\Rightarrow\, 7^n\equiv (-1)^n\equiv -1$ for odd $\,n\,$ by the Congruence Power Rule, which abstracts such iterated applications of the Product Rule.
So the nonmodular proofs can be viewed as the result of compiling the higher-level (congruence) language proofs into lower-level (divisibility) assembly language. We can do such compilation mechanically for any such congruence proof. Just as for software, the low-level assembly language is far less comprehensible since it eliminates higher level conceptual structure - which often leads to great simplification, e.g $\,a\equiv 1\,\Rightarrow\,a^n\equiv 1\,$ above.
Also worth mention is that this proof can be discovered mechanically, i.e. without any required insight, be using the method of multiplicative telescopy.