Find digits $x,y,z$ such that the equality $$\sqrt{\smash[b]{\underbrace{\overline{xx\cdots x}}_\text{$2n$}}-\smash[b]{\underbrace{\overline{yy\cdots y}}_\text{$n$}}} = \overline{\underbrace{zz\cdots z}_{n}}$$ holds for at least two values of $n \in \mathbb{N}$, and in that case find all $n$ for which this equality is true.
Is my method below correct?
Let $A_n=\overline{\underbrace{11\ldots 1}_{n}}$. Then we have $$\sqrt{\smash[b]{\underbrace{\overline{xx\cdots x}}_\text{$2n$}}-\smash[b]{\underbrace{\overline{yy\cdots y}}_\text{$n$}}} = \sqrt{\smash[b]{\underbrace{\overline{xx\cdots x}}_\text{$n$}}\cdot 10^n+xA_n-yA_n}$$ and thus equals $\sqrt{\smash[b]{A_n(x10^n+x-y)}}$.
Lemma. A number of the form $A_n(x10^n+x-y)$ can't be a perfect square.
Proof. We know that $A_n = 4k+3$, which is never a perfect square, except possibly when $n = 1$. Therefore in the case $\gcd(A_n, x10^n+x-y) = 1$, we know that the only time a solution will occur is when $n=1$. So we can disregard this case. Now, if $\gcd(A_n, x10^n+x-y) \neq 1$, that must mean $x=0$, an impossibility. $\square$