What's wrong with this:
$$\large 1^0=1^2$$
Since bases are same, therefore
$$\large 0=2$$
My thinking:
Since the function $\,f(x)=1^x\,$ is not one to one, therefore whenever $\,f(x)=f(y),\,$ $x\,$ need not be equal to $\,y$.
Question:
Is my reasoning sound?
Yes. That's fine reasoning.
Indeed $f(x) = 1^x = 1 \;\forall x \in \mathbb R$.
Certainly, as you note, $f$ fails to be injective, so it is NOT the case that $\forall x, y \in \mathbb R, \; f(x) = f(y) \implies x = y$.