This is a d'Alembert ODE, also known as a Lagrange ODE. The form of this ODE is
$$ y = xf(y') + g(y') $$
If the "4" was a "2" then it is a Clairaut ODE, which is of the form:
$$ y = xy' + g(y') $$
The solution method involves introducing a new variable for the derivative: ##y'=p## and taking the derivative of the ODE again. Some explanation with worked out examples can be found here:
https://www.math24.net/lagrange-clairaut-equations
https://www.12000.org/my_notes/dAlmbert_ode/index.htm
For your example we simply introduce ##y'=p## and write it as ##y=xf(p) + g(p)##:
$$ y = \frac{1}{2}xp + \frac{1}{4x^2}p^2$$
and we then differentiate with respect to x:
$$ p = \frac{1}{2}p + \frac{1}{2}xp' +\frac{-1}{2x^3}p^2 + \frac{2}{4x^2}pp'$$
or:
$$ (\frac{1}{2x^3}p -\frac{1}{2})p = ( \frac{2}{4x^2}p + \frac{1}{2}x)\frac{dp}{dx}$$
[edit] minus sign wrong, this should be of course : ## (\frac{1}{2x^3}p +\frac{1}{2})p = ( \frac{2}{4x^2}p + \frac{1}{2}x)\frac{dp}{dx}##
we invert the derivation and write it as an ODE in ##\frac{dx}{dp}##:
$$ (\frac{1}{2x^3}p -\frac{1}{2})\frac{dx}{dp} = \frac{x( \frac{1}{2x^3}p +\frac{1}{2} )}{p}$$
We see that if your original ODE had a different minus sign (or maybe I made a mistake?) and was actually ##y'^2 - 2x^3y' +4x^2y=0 ## then this ODE would simplify to
$$ \frac{dx}{dp} = x/p$$
Whose solution is ## x= C p ## or ## p = Cx ##
The final solution of
this ODE
with different sign in terms of y is obtained by substitution of p into the d'Alembert equation above:
$$ y = \frac{1}{2}Cx^2 - \frac{1}{4x^2}C^2x^2 = C^{*} x^2 - C^{*2}$$
Which is pretty close to the solution that you remember from university.