There are a number of questions on the internet and on this site asking about how the LIGO interferometer measurement works given that the gravitation wave stretches both the length of the interferometer arms as well as the wavelength of light within the arms. If the gravitational wave changes the length of the interferometer arm but the ticks on the ruler (spatial periods of light) also expand then you wouldn't notice a difference in length due to the gravitational wave. This is a well explored paradox which often comes up in relation to gravitational wave measurement discussions.
This question is about me not understanding the apparent resolution to this paradox. Let me lay the ground work and someone can let me know where I go astray.
The solution to the apparent paradox is apparently that the length of the arms is not what is being measured, rather, the time the light spends in the arm is being measured.
Imagine a Michelson interferometer with two arms of length $L_1=L_2=L_0$. A short pulse of light split into the two arms at $t_0$ will take time $T_{1,2} = \frac{2L_{1,2}}{c}$ to traverse each arm.
If $L_1 = L_2$ then $T_1 = T_2$ and the two pulses of light will arrive at the detector at the same time.
If a gravitational wave comes by then we have
\begin{align} L_1' &= (1+h)L_1\\ L_2' &= (1-h)L_2\\ \end{align}
In this case
\begin{align} T_1' &= \frac{2L_0}{c}(1+h)\\ T_2' &= \frac{2L_0}{c}(1-h)\\ \end{align}
So we see that $\Delta T = T_1' - T_2' = \frac{4L_0}{c}$. There will be a time delay between the two pulses.
Thus it is clearly possible to measure the presence of a gravitational wave using pulses of light sent down the two arms.
What I do not understand is how this picture still works when we change from pulses of light to continuous beams of light. The argument is roughly that the time spent in a given interferometer arm translates into a phase collected in a given interferometer arm. Since the time spent in each arm is slightly different the phase collected in each arm is different, this phase difference is then measured at the detector.
I understand that but here is my hangup. I would think we have something like
$$ \phi_{1,2} = \omega_{1,2} T_{1,2} $$
That is, the phase collected in a particular arm is the frequency of light in that arm multiplied by the time spent in that arm. If $\omega_1 = \omega_2 = \omega_0$ then it is clear that because the time spent in each arm is different that a measurable relative phase can appear.
However, I have somehow convinced myself that the frequencies of light in each arm change in such a way as to cancel the effect.. in some resolutions to the original paradox mentioned it is stated that it is correct that the wavelength of light is stretched by the same factor as the total arm lenght. So that is:
$$\lambda_1' = \lambda_1(1+h)$$
We know the speed of light is constant so
$$ \omega_{1,2} = 2\pi \frac{c}{\lambda_{1,2}}\\ \omega'_{1,2} = 2\pi \frac{c}{\lambda_0} \frac{1}{1\pm h} $$
Since
$$T'_{1,2} = \frac{2L_0}{c} (1\pm h)$$
We have
$$ \phi'_{1,2} = \omega'_{1,2} T'_{1,2} = \frac{2L}{c} \frac{2\pi c}{\lambda_0} = 2\times 2\pi \frac{L}{\lambda_0} $$
That is, there is no differential phase between the two paths and no effect is detected. Basically the original paradox asks how the length change is measured by light if the length ruler (spatial period of light) changes in the same way. The apparent resolution is that length is not measured, but rather time. But it appears to me that the time ruler (temporal periods of light) changes in the exact compensating way for the effect to also vanish in the time domain.
Where am I going wrong?
edit: Response to possible duplicate identification: While the question and answers in LIGO flawed by the identical expansion of laser wavelength and arms in presence of a gravitational wave? are very related to my question they do not answer the question I am asking here. The answer by Kyle Kanos indicates that $\phi \propto \omega_0 (L_1-L_2) h$ but there is no discussion of the possibility that the frequency of light is different in the two different arms. It is assumed to be the same.
More thoughts I've had: I've been looking at the Kip Thorn lecture notes: http://www.pmaweb.caltech.edu/Courses/ph136/yr2012/1227.1.K.pdf
I believe my confusion is related to the transverse traceless (TT) gauge vs local lorentz (LL) gauge discussion. It seems that in in the TT gauge the wavelength of light is changed as discussed above but the frequency is not changed. To my extreme surprise, then, it looks like the speed of light is actually different in the two different arms. If what I am saying here is correct the answer to my question would be that I've gone wrong in assuming the speed of light is the same in both arms. In the LL gauge it looks like the easiest way to think about things is that the length of the two arms changes but neither the wavelength nor frequency of light changes. This explanation makes the most sense to me and is often how I hear LIGO described. It seems nice to not have to worry about the light itself being affected by the gravitational wave...
edit2: See this answer for more on the TT vs LL gauge.. this may be the answer to my question if my description above of the explanation of the two gauges is correct: in TT the speed of light and wavelength (but not frequency) in the two arms changes but the length of the two arms is fixed while in LL the speed of light, wavelength, and frequency are all constant while the length of the two arms varies.