Another way is to solve it as an implicit equation. Introduce p = dx/dy, and z = x/y. Then:
<br />
p = z - \sqrt{1 + z^2}<br />
<br />
\sqrt{1 + z^2} = z - p<br />
Squaring it gives:
<br />
1 + z^2 = z^2 - 2 p z + p^2<br />
<br />
z = \frac{p^2 - 1}{2 p}<br />
or
<br />
x = y \, \frac{p^2 - 1}{2 p}<br />
This is an implicit equation of the Lagrange-Clairot type. Differentiate w.r.t. y to get:
<br />
p \, dy = \frac{p^2 - 1}{2 p} \, dy + y \, \frac{2 p \cdot p - (p^2 - 1) \cdot 1}{2 p^2} \, dp<br />
<br />
\frac{2 p^2 - p^2 + 1}{2 p} \, dy = y \, \frac{2 p^2 - p^2 + 1}{2 p^2} \, dp<br />
<br />
\frac{d y}{y} = \frac{d p}{p}<br />
Integrating this equation gives:
<br />
\ln(p) = \ln(y) + C'_1<br />
and taking the antilogarithm gives:
<br />
p = C_1 \, y<br />
Substitute this in the parametric solution for x:
<br />
x = y \, \frac{C^{2}_{1} y^2 - 1}{2 \, C_{1} \, y} = \frac{C_1 \, y^2}{2} - \frac{1}{2 \, C_1}<br />
which is the same general solution as before if you make the substitution C_1 \rightarrow -1/C_1.
But, there might also be a singular solution to the equation. It is obtained as an envelope of the family of general solutions. Differentiate w.r.t. to the arbitrary constant to get:
<br />
0 = \frac{y^2}{2} + \frac{1}{2 \, C^{2}_{1}}<br />
This sum of non-negative terms can only be zero, if each term is equal to zero separately. This corresponds to:
<br />
y = 0, \ C_1 \rightarrow \infty<br />
To check whether y = 0 is a solution of the original equation, solve it for y' = dy/dx = (dx/dy)^{-1}:
<br />
y' = \frac{1}{x/y - \sqrt{1 + (x/y)^2}} = \frac{y}{x - \mathrm{sgn}(y) \, \sqrt{y^2 + x^2}}<br />
One may argue that it is because of the y in the numerator, or that the original equation is not defined for y = 0.