We are given the differential equation:
\[ x \, dy - y \, dx = \sqrt{x^2 + y^2} \, dx \]
To solve this, we'll attempt to simplify and solve the given equation. Rewrite it as:
\[ x \, dy = \sqrt{x^2 + y^2} \, dx + y \, dx \]
Further simplification gives:
\[ x \, dy = (\sqrt{x^2 + y^2} + y) \, dx \]
This equation resembles the linear differential form \(M \, dx + N \, dy = 0\) where:
\[ M = -(\sqrt{x^2 + y^2} + y) , \quad N = x \]
To check if this equation is exact, the partial derivatives must satisfy:
\[ \frac{\partial M}{\partial y} = \frac{\partial N}{\partial x} \]
Calculate the partial derivatives:
\[ \frac{\partial M}{\partial y} = -\frac{y}{\sqrt{x^2 + y^2}} - 1, \quad \frac{\partial N}{\partial x} = 1 \]
The two partial derivatives are not equal, thus the given differential equation is not exact.
Instead, let's try a substitution to simplify the integration. Consider:
\[ v = \sqrt{x^2 + y^2} \]
Thus,
\[ v^2 = x^2 + y^2 \quad \text{and differentiating both sides gives} \quad 2v \, dv = 2x \, dx + 2y \, dy \]
So,
\[ v \, dv = x \, dx + y \, dy \]
Rewriting the original differential equation:
\[ x \, dy - y \, dx = v \, dx \]
Substituting, we have:
\[ y \, dy = v \, dx - x \, dx \]
Separate variables and integrate:
\[ \int y \, dy = \int (v - x) \, dx \]
This results in:
\[ \frac{y^2}{2} = \int v \, dx - \int x \, dx \]
Where each integral can be expressed as:
\[ \frac{y^2}{2} = vx - \frac{x^2}{2} + C \]
This implies:
\[ y^2 = 2vx - x^2 + 2C \]
The implicit solution can be rearranged to match one of the options:
\[ \sqrt{x^2 + y^2} = c x^2 - y \]
Thus, the correct solution is:
\[ \sqrt{x^2 + y^2} = c x^2 - y \]
This matches the given correct answer choice.