The provided function is:
\[ f(x) = \left( \sqrt{8x - x^2 - 16} \right)^2 + (x - 7)^2. \]
Simplification yields:
\[ f(x) = 8x - x^2 - 16 + (x - 7)^2. \]
Expanding \( (x - 7)^2 \):
\[ f(x) = 8x - x^2 - 16 + x^2 - 14x + 49. \]
Combining like terms results in:
\[ f(x) = -6x + 33. \]
To find the extrema of \(f(x)\), we compute its derivative:
\[ f'(x) = -6. \]
As the derivative is a negative constant, \(f(x)\) is a decreasing linear function. The maximum value will occur at the lower bound of the domain, and the minimum value at the upper bound.
The expression under the square root must be non-negative:
\[ 8x - x^2 - 16 \geq 0 \quad \implies \quad x^2 - 8x + 16 \leq 0. \]
Solving the quadratic inequality:
\[ (x - 4)^2 \leq 0 \quad \implies \quad x = 4. \]
The domain of \(x\) is thus the single point \(x = 4\).
Substituting \(x = 4\) into \(f(x)\):
\[ f(4) = 8 \cdot 4 - 4^2 - 16 + (4 - 7)^2 = 32 - 16 - 16 + 9 = 9. \]
The minimum value \(m = 9\).
Given that \(M = 49\):
\[ M^2 - m^2 = 49^2 - 9^2 = 1600. \]
The final result is 1600.