The punchline is that ${S}$ contains ${E}$ because for any $A \in {E}$, $A \in \sigma(A)$ hence $A \in S$ by definition of $S$.
The punchline is that ${S}$ contains ${E}$ because for any $A \in {E}$, $A \in \sigma(A)$ hence $A \in S$ by definition of $S$.