I was recently reading from the book "Vectors, Pure and Applied", $\S 16.1$ on bilinear forms. It begins
In section 8.3 we discussed functions of the form $$(x,y) \mapsto ux^2 + 2vxy + wy^2$$ These are special cases of the idea of a bilinear function.
Definition 16.1.1 If $U,V$ and $W$ are vector spaces over $\mathbb{F}$, then $a:U\times V \to W$ is a bilinear function if the map $$\alpha_{,v}:U\to W \text{ given by } \alpha_{,v}(u) = \alpha(u,v)$$ is linear for each fixed $v \in V$ and the map $$\alpha_{u,}:V\to W \text{ given by } \alpha_{u,}(v) = \alpha(u,v)$$ is linear for each fixed $u \in U.$
It's my understanding that this definition is simply saying that a bilinear function is linear in each argument with the other held fixed. However, the initial "special case" appears to not be a bilinear function at all, for fixing $y$ we have
$$(cx, y) \mapsto uc^2 x^2 + 2vcxy + wy^2 \neq c(ux^2 + 2vxy + wy^2)$$
for some scalar $c$.
What am I missing? Or have I completely forgotten the definition of linearity?
The wording "...are special cases..." seems rather misleading here, but there is a sensible explanation for what's going on:
Given any vector space $\Bbb V\newcommand{\bfx}{{\bf x}}\newcommand{\bfy}{{\bf y}}$ over a field $\Bbb F$ and a bilinear function $B: \Bbb V \times \Bbb V \to \Bbb F$, we can build a quadratic form $Q : \Bbb V \to \Bbb F$ by defining $$Q(\bfx) := B(\bfx, \bfx).$$
This map is not linear: Indeed, as you've observed (in a special case, see below), we have for $a \in \Bbb F$ that $$Q(a \bfx) = B(a \bfx, a \bfx) = a^2 B(\bfx, \bfx) = a^2 Q(\bfx) .$$ Furthermore, one cannot in general determine $Q(\bfx + \bfy)$ in terms of $Q(\bfx)$ and $Q(\bfy)$ alone.
Now, for the "special cases":
If a bilinear form $B$ is symmetric, that is, if $$B(\bfx, \bfy) = B(\bfy, \bfx)$$ for all $\bfx, \bfy \in \Bbb V$, we can recover $B$ from the quadratic form it defines by $$B(\bfx, \bfy) = \frac{1}{2}[Q(\bfx + \bfy) - Q(\bfx) - Q(\bfy)] ,$$ at least provided that $\operatorname{char} \Bbb F \neq 2$.
(If $B$ is not symmetric, this construction instead recovers the symmetrization of $B$, namely, the map $(\operatorname{Sym} B)(\bfx, \bfy) := \frac{1}{2}[B(\bfx, \bfy) + B(\bfy, \bfx)]$, and it's easy to check that this map is a symmetric bilinear form.)
A bilinear form is symmetric if its matrix $A$ w.r.t. some, equivalently any, basis is symmetric. Since the matrices of the form $$\pmatrix{u&v\\v&w}$$ are precisely the symmetric $2 \times 2$ matrices over $\Bbb F$, the "special cases" in fact are precisely all of the symmetric bilinear forms on $\Bbb F^2$.