It looks like an error in the notes to me. If you plug in the solution found in the notes (which is what the author suggests you do in Exercise 0.4), you get $$ (x^2 + 1) u_x = (x^2 + 1) \left[ 2 y x \phi'(y(1 + x^2))\right] $$ but $$ 2x u_y = 2x \left[ (1 + x^2) \phi'(y(1 + x^2))\right] $$ and so $$ (x^2+1)u_x +2xu_y = \left[ (x^2 + 1) (2 y x + 2x) \right] \phi'(y(1 + x^2)) \
eq 0. $$ The solution found in the notes would be the solution to the equation $(x^2+1)u_x - 2xyu_y = 0$ (note the change in sign in the second term) with the same boundary conditions.