Why is
$\left( \begin{array}{cc} 1 & 1 \\ 1 & 1 \\ \end{array} \right)^0=\left( \begin{array}{cc} \frac{1}{2} & \frac{1}{2} \\ \frac{1}{2} & \frac{1}{2} \\ \end{array} \right)$
This result me returns Mathematica on this command
Limit[MatrixFunction[#^s &, ( { {1, 1}, {1, 1} } )], s -> 0, Direction -> "FromAbove"]
Result:
{{1/2, 1/2}, {1/2, 1/2}}
Should not anything rised to zeroth power be $1$?
As a limit it is like $0^0$. So you shouldn't write $A^0$. You can diagonalize it, it has eigenvalues 2,0 with corresponding eigenvectors,
$$E = \begin{bmatrix}1 & 1 \\ 1 & -1 \end{bmatrix}$$
So now we can look at the nth power as,
$$A^n = E^{-1} \begin{bmatrix} 2^n & 0 \\ 0 & 0^n \end{bmatrix} E$$
Taking the limit of this as $n \to 0^+$ now we have $2^0=1$ in the upper entry and we end up with your result.