Let $a=BC$, $b=AC$, $c=AB$, $\gamma=\angle ACB$. Combining $2ab=(a+b)^2-(a^2+b^2)$ with $a^2+b^2=c^2+2ab\cos\gamma$ we get: $$ ab={(a+b)^2-c^2\over2(1+\cos\gamma)} \quad\text{and}\quad area_{ABC}={1\over2}ab\sin\gamma={(a+b)^2-c^2\over4(1+\cos\gamma)}\sin\gamma. $$ As long as $C$ lies on one of the arcs $AB$ the value of $\gamma$ is fixed, as is fixed $c$. Hence the area depends only on $(a+b)$ and it is extremal if $(a+b)$ is.
Notice however that $\gamma$ changes to $\pi-\gamma$ when $C$ passes from one arc to the other: $\sin\gamma$ doesn't change, while $\cos\gamma$ changes its sign. Hence there are two local maxima, while the minimum (area$\ =0$) is attained in the degenerate case $a+b=c$.