I see what you are trying to say now. If we go to a locally inertial frame of a dust particle in the congruence, with locally inertial coordinates ##(x'^0,x'^1,x'^2,x'^3)##, then yes
in these coordinates ##u^{\mu'} = \delta ^{\mu'}_{x'_{0}}## but this is not covariant (you can see it easily because one of the coordinates explicitly enters the equation). It is only true, in general, in the locally inertial coordinates; the form need not hold in general when you transform to another set of coordinates.
We want to use the preferred coordinates ##(t,x^{1},x^{2},x^{3})## adapted to the time-like and hypersurface orthogonal killing vector field of the static metric because we KNOW that in these coordinates ##\xi^{\mu} = \beta \nabla^{\mu}t## and that for any ##v^{\mu}\in T_{p}\Sigma_{t}##, ##v^{\mu}\nabla_{\mu}t = v^{t} = 0##; this was the result that was pivotal in proving the final result we wanted. There is no reason why this should hold in the locally inertial coordinates nor even have the same meaning.
If you could always use the locally inertial frame of a particle to claim ##u^{i} = 0## in
any coordinate system of any space-time just because it is ubiquitously true in the locally inertial coordinates then test particle trajectories in GR would be rather banal