After noticing that implicit differentiation allows you to find an expression for a derivative for relations that aren't even functions (ex. $\frac{dx}{dy}$ where $x$ is defined by $y = x^4 + ax^3 + bx^2+cx + d$), I have been playing around with similar relations, such as $x^2 = y^2$. Implicitly I can find that
$$x = y \cdot y' = \pm x \cdot y'$$
According to this, $y' = \{1, -1\} $ when $x \neq 0$ and $y' = \Bbb R $ when $x = 0$. However, looking at the graph, I am not convinced why $y'$ should be $\Bbb R$ instead of $\{1, -1 \}$.

Instead, I would intuitively expect $y' = \{1, -1\}$ for all $y$, or perhaps algebraically $(y')^2 = 1$. (But I couldn't get my derivative into this form without division by $0$). Looking at the graph, I would find it more natural to draw tangent lines at $(0, 0)$ with slope $1$ or $-1$ compared to, say, $\pi$ or anything else which satisfies $0 = 0\cdot y'$ . I would appreciate if someone could explain the discrepancy!
You have to be careful about when implicit differentiation works. It relies on the implicit function theorem:
In your example $F(x,y) = x^2 - y^2$ and $\dfrac{\partial F}{\partial y}(0,0) = 0$ so the implicit function theorem doesn't hold.