These are the definitions I am using:
1) Let $v: \mathbb{R}^n \to \mathbb{R}^n$ be a vector field. For a regular value $y$ of $v$, we define the degree $$ \deg(v) = \sum_{x \in v^{-1}(y)} \operatorname{sign}(\det J(x)) $$ where $J$ is the Jacobian of $v$.
2) Suppose $v$ has an isolated zero at $x$. Choose a ball of radius $r>0$ about the isolated zero such that no other zero is contained in the ball. The index of the zero is defined to be the degree of the map $v(x+rw)/\|v(x+rw)\| : S^{n-1} \to S^{n-1}$.
Now, my questions. The vector field $$ v = (x^2 - y^2, -2xy) $$ has an isolated singularity at the origin. It has degree $-2$, easily seen by computing the Jacobian and looking at the pre-image of $(1,0)$.
From looking at plots of the field and also the answer to this question, I believe that in this case the index of the point 0 should also be $-2$. The answer to the linked question explicitly claims that this is the case. However I have some confusion about this.
If we compute the Jacobian of $v/\|v\|$, we find the determinant is everywhere $0$. This tells me that either $v/\|v\|$ has no regular values (which is impossible, because it contradicts Sard's theorem?) or else is not surjective, so there is some point with empty pre-image which is trivially regular, and hence the index of $v$ is $0$.
Question 1: What is the index of the zero at $0$ for this field $v$?
Consider the map $$ w = (x^2 - y^2 +x, -2xy+y) $$ Then the Jacobian of $w$ at the origin has determinant $1$. There is a theorem on p37 of Milnor that says the index must then be 1, however when I compute the Jacobian of $w/\|w\|$ the determinant is again everywhere $0$.
Question 2: What is the index of the zero at $0$ for the field $w$? It should be $1$, but the Jacobian of the map $w/\|w\|$ has determinant 0.
Is using the Jacobian when computing the degree of $v/\|v\|$ the wrong thing to do? I'd appreciate if someone could clear this up for me, and especially if they could work through the computation of the index of $v$ or $w$.
Edit: My other concern is that the sum of the indices of all isolated zeros of a vector field $v:\mathbb{R}^n \to \mathbb{R}^n$ must be equal to the Euler characteristic of $\mathbb{R}^n$, which is 1. This doesn't seem to be the case with what I'm doing. Help?
Your question really doesn't make very much sense, because it seems to be based on multiple confusions. But perhaps I can try to clear up some of these confusions.
First, your definition of the index at an isolated zero $x$ is incorrect, in that you ignored the appropriate domain of the map. Choose a small radius $r>0$ such that $x$ is the only zero in the closed ball around $x$ of radius $r$. The index of $v$ at $x$ is defined to be the degree of the map $f : S^{n-1} \to S^{n-1}$ defined by the formula $$f(w) = \frac{v(x+rw)}{||v(x+rw)||} $$
Now that this is cleared up, you write: "I am under the impression that the index of this vector field at $0$ should also be $-2$...". But this statement indicates a domain/range confusion:
It makes no sense to ask whether an invariant of a point in the domain and an invariant of a point in the range are equal. For example, $x$ could be just one point out of a multiplicity of points forming the set $f^{-1}(y)$: What if $x$ is not an isolated zero of the vector field, so the index is not even defined? What if $x$ is one of several isolated zeroes of the vector field, all of which could have different indices?