My attempt: Consider the first component of both sides. $$LHS=\frac{1}{2}\frac{\partial}{\partial x_1}(u_1^2+u_2^2+u_3^2)=u_1 \frac{\partial u_1}{\partial x_1}+u_2 \frac{\partial u_2}{\partial x_1} + u_3 \frac{\partial u_3}{\partial x_1}$$ $$RHS=u_1\left( \frac{\partial u_1}{\partial x_1}+\frac{\partial u_2}{\partial x_2}+\frac{\partial u_3}{\partial x_3}\right)+u_2(\partial_1u_2-\partial_2u_1)-u_3(\partial_3u_1-\partial_1u_3)$$
Then I got stuck as I couldn't cancel out some of the terms and don't know how to proceed. Any help will be appreciated!
I think you may have misinterpreted the notation $(\mathbf u . \nabla) \mathbf u$.
The first component of the RHS is actually this:
$$ \left(u_1 \partial_1 + u_2 \partial_2 + u_3 \partial_3 \right) u_1 + u_2 (\partial_1 u_2 - \partial_2 u_1) - u_3 (\partial_3 u_1 - \partial_1 u_3) $$
In other words, it is this:
$$ (u_1 \partial_1 u_1 + u_2 \partial_2 u_1 + u_3 \partial_3 u_1) + u_2 (\partial_1 u_2 - \partial_2 u_1) - u_3 (\partial_3 u_1 - \partial_1 u_3) $$