I can't follow your argument at all. You seem to be proving that a _shortest_ walk cannot begin and end at the same node (which is at least doubtful -- how about the empty walk?), but the question was about a _longest_ one.
Instead, if the walk both begins and ends at $v$, then the walk have used an _even_ number of edges that touch $v$ -- namely, you _leave_ $v$ the same number of times you _come back_ to it. Since $v$ had odd degree, this means there must be at least one edge left unused that you could continue the walk along -- so it certainly wasn't the _longest_ walk that doesn't repeat edges.