I have tried a proof $\;\lim\limits_{x\to0}x^2=1\,.\,$ I know it is wrong but could you tell me where ?
By $\,\delta\,,\,\varepsilon\,$ definition $\;|f(x)-l|<\varepsilon\,$, $\;|x-0|<\delta$
- $-\varepsilon<x^2-1<\varepsilon$
- $-\varepsilon+1<x^2<\varepsilon+1$
- $\sqrt{(-\varepsilon+1)}<x<\sqrt{(\varepsilon+1)}$
So I take $\,\delta\,$ as $\,\sqrt{(1 - \varepsilon)}\,.$
In your step 3,
This is a region roughly centered around $x=1$. In particular, when $\epsilon$ is very small, you cannot put e.g. $x=0.001$ to satisfy the inequality. When $\epsilon<1$, $x=0$ doesn't belong to the set.
The set $|x|<\delta$ is a small region around $0$. If you put $\delta = \sqrt{1-\epsilon}$ then that means you are considering $|x|<\sqrt{1-\epsilon}$ i.e. $$-\sqrt{1-\epsilon} < x < \sqrt{1-\epsilon}.$$ In fact these two regions are completely disjoint.
Hope this graph sends the point home: