This seems like a fairly elementary problem but I am not sure where my reasoning is incorrect, whether it's down to a simple error in Boolean algebra or if I'm misunderstanding something else.
We want to show that
$A \cup B \cup C = (A-B)\cup(B-C)\cup(C-A)\cup(A \cap B \cap C)$.
Let $x \in A \cup B \cup C$. Then:
$(x \in A) \lor (x \in B) \lor (x \in C) \\ \leftrightarrow (x \in A \land \mathbf T) \lor (x \in B \land \mathbf T) \lor (x \in C \land \mathbf T) \\ \leftrightarrow (x \in A \land (x \in B \lor x\notin B)) \lor (x \in B \land (x \in C \lor x\notin C)) \lor (x \in C \land (x \in A \lor x\notin A)) \\ \leftrightarrow ((x \in A \land x \in B) \lor (x\in A \land x\notin B)) \lor ((x \in B \land x \in C) \lor (x\in B \land x\notin C)) \lor ((x \in C \land x \in A) \lor (x\in C \land x\notin A)) \\ \leftrightarrow (x \in A \land x \in B) \lor (x\in(A-B)) \lor (x \in B \land x \in C) \lor (x\in (B-C)) \lor (x \in C \land x \in A) \lor (x\in (C- A)) \\ \leftrightarrow x\in(A-B) \lor x\in (B-C) \lor x\in (C- A) \lor (x \in A \land x \in B) \lor(x \in B \land x \in C) \lor (x \in C \land x \in A)$
...which almost works, but obviously $(x \in A \land x \in B) \lor(x \in B \land x \in C) \lor (x \in C \land x \in A) \neq x\in A \land x\in B \land x\in C$.
I suspect I am erroneously equivocating some Boolean algebra operation onto set operations.
From your third line, continue:
$((x \in A \land x \in B) \lor (x\in A \land x\notin B)) \lor ((x \in B \land x \in C) \lor (x\in B \land x\notin C)) \lor ((x \in C \land x \in A) \lor (x\in C \land x\notin A)) \Leftrightarrow \text{ (removing redundant parentheses)}$
$(x \in A \land x \in B) \lor (x\in A \land x\notin B) \lor (x \in B \land x \in C) \lor (x\in B \land x\notin C) \lor (x \in C \land x \in A) \lor (x\in C \land x\notin A) \Leftrightarrow \text{ same trick you did at start!}$
$(x \in A \land x \in B \land \mathbf T) \lor (x\in A \land x\notin B) \land \mathbf T) \lor (x \in B \land x \in C \land \mathbf T) \lor (x\in B \land x\notin C \land \mathbf T) \lor (x \in C \land x \in A \land \mathbf T) \lor (x\in C \land x\notin A \land \mathbf T) \Leftrightarrow$
$(x \in A \land x \in B \land (x \in C \lor x \notin C)) \lor (x\in A \land x\notin B) \land (x \in C \lor x \notin C)) \lor (x \in B \land x \in C \land (x \in A \lor x \notin A)) \lor (x\in B \land x\notin C \land (x \in A \lor x \notin A)) \lor (x \in C \land x \in A \land (x \in B \lor x \notin B)) \lor (x\in C \land x\notin A \land (x \in B \lor x \notin B)) \Leftrightarrow$
$(x \in A \land x \in B \land x \in C) \lor (x \in A \land x \in B \land x \notin C) \lor (x\in A \land x\notin B \land x \in C) \lor (x\in A \land x\notin B \land x \notin C) \lor (x \in B \land x \in C \land x \in A) \lor (x \in B \land x \in C \land x \notin A) \lor (x\in B \land x\notin C \land x \in A) \lor (x\in B \land x\notin C \land x \notin A) \lor (x \in C \land x \in A \land x \in B) \lor (x \in C \land x \in A \land x \notin B) \lor (x\in C \land x\notin A \land x \in B) \lor (x\in C \land x\notin A \land x \notin B) \Leftrightarrow \text{ Commutation }$
$(x\in A \land x\notin B \land x \in C) \lor (x \in C \land x \in A \land x \notin B) \lor (x\in A \land x\notin B \land x \notin C) \lor (x \in A \land x \in B \land x \notin C) \lor (x\in B \land x\notin C \land x \in A) \lor (x\in B \land x\notin C \land x \notin A) \lor (x\in C \land x\notin A \land x \in B) \lor (x \in B \land x \in C \land x \notin A) \lor (x\in C \land x\notin A \land x \notin B) \lor (x \in A \land x \in B \land x \in C) \lor (x \in B \land x \in C \land x \in A) \lor (x \in C \land x \in A \land x \in B) \Leftrightarrow \text{ Removing duplicates by Idempotence }$
$(x\in A \land x\notin B \land x \in C) \lor (x\in A \land x\notin B \land x \notin C) \lor (x\in B \land x\notin C \land x \in A) \lor (x\in B \land x\notin C \land x \notin A) \lor (x\in C \land x\notin A \land x \in B) \lor (x\in C \land x\notin A \land x \notin B) \lor (x \in A \land x \in B \land x \in C) \Leftrightarrow $
$(x\in A \land x\notin B \land (x \in C \lor x \notin C)) \lor (x\in B \land x\notin C \land (x \in A \lor x \notin A)) \lor (x\in C \land x\notin A \land (x \in B \lor x \notin B)) \lor (x \in A \land x \in B \land x \in C) \Leftrightarrow $
$(x\in A \land x\notin B \land \mathbf T) \lor (x\in B \land x\notin C \land \mathbf T) \lor (x\in C \land x\notin A \land \mathbf T) \lor (x \in A \land x \in B \land x \in C) \Leftrightarrow $
$(x\in A \land x\notin B ) \lor (x\in B \land x\notin C ) \lor (x\in C \land x\notin A ) \lor (x \in A \land x \in B \land x \in C) \Leftrightarrow $
$ (x\in B - C) \lor (x\in A - B) \lor (x\in A - C) \lor (x \in A \land x \in B \land x \in C)$
Now, that's pretty lengthy ... can we shorten this?
Yes, first of all, instead of doing something like:
$x \in A \Leftrightarrow x \in A \land T \Leftrightarrow x \in A \land (x \in B \lor x \notin B) \Leftrightarrow (x \in A \land x \in B) \lor (x \in A \land x \notin B)$
there is a handy-dandy equivalence called:
Adjacency
$P \Leftrightarrow (P \land Q) \lor (P \land \neg Q)$
and with that, you can just do this in 1 step:
$x \in A \overset{Adjacency}\Leftrightarrow (x \in A \land x \in B) \lor (x \in A \land x \notin B)$
Moreover, all boolean logical rules have a perfect equivalent in set-theory, so that, for example, you also have:
$A \overset{Adjacency}= (A \cap B) \cup (A \cap B^C)$
So, while still following the same basic thought, we can do your problem as follows:
$A \cup B \cup C=$
$(A \cap B) \cup (A \cap B^C) \cup (B \cap C) \cup (B \cap C^C) \cup (C \cap A) \cup (C \cap A^C)=$
$(A \cap B \cap C) \cup (A \cap B \cap C^C) \cup (A \cap B^C \cap C) \cup (A \cap B^C \cap C^C) \cup (B \cap C \cap A) \cup (B \cap C \cap A^C) \cup (B \cap C^C \cap A) \cup (B \cap C^C \cap A^C) \cup (C \cap A \cap B) \cup (C \cap A \cap B^C) \cup (C \cap A^C \cap B) \cup (C \cap A^C \cap B^C)=$
$(A \cap B^C \cap C) \cup (C \cap A \cap B^C) \cup (A \cap B^C \cap C^C) \cup (A \cap B \cap C^C) \cup (B \cap C^C \cap A) \cup (B \cap C^C \cap A^C) \cup (C \cap A^C \cap B) \cup (B \cap C \cap A^C) \cup (C \cap A^C \cap B^C) \cup (A \cap B \cap C) \cup (B \cap C \cap A) \cup (C \cap A \cap B) =$
$(A \cap B^C \cap C) \cup (A \cap B^C \cap C^C) \cup (B \cap C^C \cap A) \cup (B \cap C^C \cap A^C) \cup (C \cap A^C \cap B) \cup (C \cap A^C \cap B^C) \cup (A \cap B \cap C) =$
$(A\cap B^C)\cup(B\cap C^C)\cup(C\cap A^C)\cup(A \cap B \cap C)=$
$(A-B)\cup(B-C)\cup(C-A)\cup(A \cap B \cap C)$
But, we can do better yet. Consider:
Reduction
$P \lor (\neg P \land Q) \Leftrightarrow P \lor Q$
which is a special case of:
Generalized Reduction
$(P \land Q) \lor (P \land \neg Q \land R) \Leftrightarrow (P \land Q) \lor (P \land R)$
With these, your identity is more quickly shown, and probably better best understood when starting with the right side:
$(A-B)\cup(B-C)\cup(C-A)\cup(A \cap B \cap C)=$
$(A\cap B^C)\cup(B\cap C^C)\cup(C\cap A^C)\cup(A \cap B \cap C)\overset{Generalized Reduction}=$
$(A\cap B^C)\cup(B\cap C^C)\cup(C\cap A^C)\cup(A \cap C)\overset{Adjacency}=$
$(A\cap B^C)\cup(B\cap C^C)\cup C\overset{Reduction}=$
$(A\cap B^C)\cup B\cup C\overset{Reduction}=$
$A \cup B\cup C$