Network faults propagate layer by layer along topology and protocol dependencies, yet operations systems typically observe only symptomatic alerts at the tail end of propagation chains, where distinct root-cause faults may produce highly similar end-point symptoms. Existing approaches, whether rule-based, machine learning (ML)-based, or large language model (LLM)-based, fundamentally map the alert set to a diagnosis in a single pass and are structurally incapable of resolving this end-point ambiguity. This paper proposes PropLLM, which is the first to integrate the hop-by-hop scene reconstruction paradigm with the generative reasoning capabilities of LLMs. Starting from end-point alerts, PropLLM traces back hop-by-hop along the propagation path, retrieving verifiable factual evidence from a dual-layer knowledge graph (KG) at each hop, while the proposed Temporal Causal Propagation Attention (TCPA) mechanism encodes known topological causal priors directly into the attention computation to guide the model along the correct causal direction, ultimately localizing the root cause and determining the fault type through a fully evidenced causal chain. On a real-world Wi-Fi multimodal fault dataset, PropLLM improves fault type diagnosis accuracy by 3.9\% and root cause localization accuracy by 4.7\% over the strongest baseline, while reducing the hallucination rate by 50.8\%. Supplementary experiments on the TeleLogs 5G dataset further demonstrate the effectiveness of the proposed method across different network scenarios.