The limiting value of $f(x,y)=x^2+y^2$ is $0$ as $(x,y)$ tends to $(0,0)$.
So if I want to prove the same using $\epsilon$ - $\delta$ definition for a given $\epsilon=0.01$, I will certainly go as follows: $|x^2+y^2| < 0.01$ $\sqrt{x^2+y^2} < \sqrt{0.01}$ so I got a value of $\delta=0.1$ corresponding to $\epsilon=0.01$.
Now my question is if lets say the limiting value of $f(x,y)=x^2+y^2$ is $1$ as $(x,y)$ tends to $(0,0)$ then, $|x^2+y^2-1| < 0.01$ $\sqrt{x^2+y^2} < \sqrt{0.01}$.
Here also exists a $\delta$ corresponding to $\epsilon$.
Does that mean $1$ is the limiting value of $f(x,y)$?
No. Observe that your inequality $|x^2+y^2-1| < 0.01 \sqrt{x^2+y^2}$ is false !