Assuming you did all the algebra correctly, I haven't checked: You made an error in the algebra! Heh.
When you differentiated you got $$Q(x,y)y'+P(x,y)=0,\quad(*)$$where $P$ and $Q$ are two nasty polynomials. Then you converted that to $$y'=-\frac{P(x,y)}{Q(x,y)}.\quad(**)$$
But going from (*) to ($**$) is only valid if $Q(x,y)\ne0$. So you haven't actually shown that (**) holds, you've shown that $(**)$ holds at points where $Q\ne0$. Again assuming that you did everything else right, at $(1,0)$ equation (*) becomes $$0(2)=0,$$which is no problem since $0$ times $2$ does equal $0$. But $0(2)=0$ does not imply $2=0/0$.