First note that your proof obtains the two-sided limit, not just the limit from above.
But proving more than what was requested is not an error.
For the two-sided limit, your proof is essentially correct, with one minor error.
Here's a version of your proof, with the minor error fixed, and with a few organizational changes . . .
Let $f(x) = x^4-16$.
Claim ${\displaystyle{\lim_{x \to -2}\;f(x) = 0}}$.
Fix $\epsilon > 0$, and let $\delta = \min(1,{\large{\frac{\epsilon}{65}}})$.
Our goal is to show $|x+2| < \delta$ implies $|f(x)| < \epsilon$.
Suppose $|x+2| < \delta$.
\begin{align*}
\text{Then}\;\;&|x+2| < \delta\\[2pt]
\implies\;&|x+2| < 1\\[2pt]
\implies\;&-1 < x+2 < 1\\[2pt]
\implies\;&-3 < x < -1&&(*)\\[10pt]
\text{Then}\;\;&-5 < x-2 < -3&&\text{[from $(*)$]}\\[2pt]
\implies\;&|x-2| < 5\\[10pt]
\text{and}\;\;&1 < x^2 < 9&&\text{[from $(*)$]}\\[2pt]
\implies\;&5 < x^2 + 4 < 13\\[2pt]
\implies\;&|x^2 + 4| < 13\\[9pt]
&\!\!\!\!\!\!\!\!\!\!\!\!\!\!\!\!
\text{Combining the results, we get}\\[9pt]
&|f(x)|\\[2pt]
=\;\;&|x^4-16|\\[2pt]
=\;\;&|(x+2)(x-2)(x^2+4)|\\[2pt]
=\;\;&|x+2||x-2||x^2+4|\\[2pt]
<\;\;&(\delta)(5)(13)\\[2pt]
=\;\;&(\delta)(65)\\[2pt]
\le\;\;&({\small{\frac{\epsilon}{65}}})(65)\\[2pt]
=\;\;&\epsilon\\[2pt]
\end{align*}
Thus,$\;|x+2| < \delta\;$implies $|f(x)| < \epsilon,\;$as required.
It follows that ${\displaystyle{\lim_{x \to -2}\;f(x) = 0}}$.
Comparing the solutions, here are the points which I think should be noted . . .
- At the start, state the limit to be proved.$\\[6pt]$
- Declare your choice of $\delta$ as a function of $\epsilon$, before using it.$\\[6pt]$
- You can't simply square both sides of an inequality, unless the sides are nonnegative, so in that situation, more care is required. That's your minor error.$\\[6pt]$
But all in all, your solution should definitely not be marked as wrong.
If I were grading it, I might deduct $1$ point out of $10$.