Let me add an alternative proof I just found.
Using the relation $(-x)_k=(-1)^k(x-k+1)_k$ and $(\frac12)_{n-k}(\frac12-n)_k=(-1)^k(\frac12)_n$, rewrite
$$\sum_{i=0}^{j-1}\frac{(\frac12)_i^2}{i!^2}\frac1{j-i}
=\sum_{k=0}^{j-1}\frac{(\frac12)_{j-k-1}^2}{(j-k-1)!^2}\frac1{k+1}
=\frac{(\frac12)_j^2}{j!^2}\sum_{k=0}^{j-1}\frac{(-j)_{k+1}^2}{(\frac12-j)_{k+1}^2}\frac1{k+1}.$$
The assertion amounts to $\sum_{k=0}^{j-1}\frac{(-j)_{k+1}^2}{(\frac12-j)_{k+1}^2}\frac1{k+1}=\sum_{k=0}^{j-1}\frac4{2k+1}$. Apply $(x)_{k+1}=x(x+1)_k$ so that
$$\sum_{k=0}^{j-1}\frac{(-j)_{k+1}^2}{(\frac12-j)_{k+1}^2}\frac1{k+1}
=\frac{j^2}{(\frac12-j)^2}
\sum_{k=0}^{j-1}\frac{(1-j)_k^2}{(\frac32-j)_k^2}\frac1{k+1}
=\frac{j^2}{(\frac12-j)^2}
\sum_{k=0}^{j-1}\frac{(1-j)_k^2(1)_k^2}{(\frac32-j)_k^2(2)_kk!}.$$
The RHS is a balanced ${}_4F_3$ series and can be transformed by Bailey tract [Generalized Hypergeometric series, Stechert-Hafner, New York, 1964, p.56] or any classical reference:
\begin{align}
{}_4F_3[x,y,z,-m;u,v,w]&=\frac{(v-z)_m(w-z)_m}{(v)_m(w)_m} \times \\
&{}_4F_3[u-x,u-y,z-m;1-v+z-m,1-w+z-m,u].
\end{align}
Let $y=z=1, x=1-j, m=j-1, u=v=\frac32-j$ and $w=2$. Then,
\begin{align}
\sum_{k=0}^{j-1}\frac{(1-j)_k^2(1)_k^2}{(\frac32-j)_k^2(2)_kk!}
&={}_4F_3[1,1,1-j,1-j;\frac32-j,\frac32-j,2] \\
&=\frac{(\frac12-j)_{j-1}(1)_{j-1}}{(\frac32-j)_{j-1}(2)_{j-1}}
{}_4F_3[1,\frac12,-j+\frac12,1-j;-j+\frac32,\frac32,1-j] \\
&=\frac{2j-1}j\sum_{k=0}^{j-1}\frac{(\frac12)_k(-j+\frac12)_k}{(\frac32)_k(-j+\frac32)_k} \\
&=\frac{(2j-1)^2}j\sum_{k=0}^{j-1}\frac1{(2k+1)(2j-1-2k)} \\
&=\frac{(2j-1)^2}{2j^2}\sum_{k=0}^{j-1}\left[\frac1{2k+1}+\frac1{2j-1-2k}
\right] \\
&=\frac{(2j-1)^2}{j^2}\sum_{k=0}^{j-1}\frac1{2k+1}.
\end{align}
This completes the proof.
ADDED. The identity under question can be found in the paper S. Boettner, V.H. Moll The integrals in Gradshteyn and Ryzhik. Part 16: Complete elliptic integrals, pages 11-12 https://arxiv.org/abs/1005.2941
Also read on page 14 to find:
"Acknowledgments. The authors wish to thank T. Amdeberhan for many comments on a first draft of this paper. In particular, both proofs of Lemma 7.1 are due to him."