I think you know this, but just to be sure, be aware that the U in the last scenario
Mr : Mass of rocket case
Mp : Mass of payload capsule
Vr': Final velocity of rocket case
U : Relative velocity of payload capsule (to rocket)
V : Initial velocity of both
V{^'}_r = V + \Delta V
(M_r + M_p) V = M_r V{^'}_r + M_p (V{^'}_r - U)
is not the same thing as the U in the equation
U = V + dV - V_{gas}
In this equation for the rocket that is gradually ejecting fuel, U is the velocity of the gas as seen by the distant observer. In the latest scenario U is the relative velocity. It corresponds to the V_{gas} in the equation just above.
In the last post I explained why it does not matter whether you used
U = V + dV - V_{gas}
or
U = V - V_{gas}
when you are considering differential changes in mass and velocity, but that I preferred the second form. I had not looked carefully enough at your equation of the rocket case-payload separation. This equation
(M_r + M_p) V = M_r V{^'}_r + M_p (V{^'}_r - U)
which, after substitution becomes
(M_r + M_p) V = M_r (V + \Delta V) + M_p (V + \Delta V - U)
needs to be interpreted carefully. First, we need to agree that it is the rocket case that is being left behind, and the payload capsule that is being thrust forward. In that case, \Delta V, as you have defined it, is a negative quantity. The rocket case is slowed down by the separation. The final velocity of the payload is greater than V{^'}_r not less than V{^'}_r. The equation is OK, as long as U is also taken to be negative. If U is taken to be positive, which is implied by the way you have stated it, the equation should be
(M_r + M_p) V = M_r (V + \Delta V) + M_p (V + \Delta V + U) = M_r V{^'}_r + M_p (V{^'}_r + U)
I would prefer to change the meaning of \Delta V to make it analogous to the dV of the rocket gradually ejecting fuel. I would have written
Mr : Mass of rocket case
Mp : Mass of payload capsule
Vp' : Final velocity of payload capsule
U : Relative velocity of payload capsule (to rocket)
V : Initial velocity of both
V{^'}_p = V + \Delta V
(M_r + M_p) V = M_p V{^'}_p + M_p (V{^'}_p - U)
Now \Delta V is a positive quantity that represents the increase in velocity of the payload, and U is a positive quantity representing the relative velocity. After substitution this becomes
(M_r + M_p) V = M_p (V + \Delta V) + M_r (V + \Delta V - U)
After looking at this more carefully, I have to change my earlier opinion about the two differential forms of the equation. The preferred way to write that equation should be analogous to this last equation. That would be
U = V + dV - V_{gas}
where U in these two equations mean completely different things. The analogy is between the final velocity of the expended rocket case
V + \Delta V - U
and final velocity of the ejected fuel
V + dV - V_{gas}
where U is the positive relative velocity in the first equation and V_{gas} is the positive relative velocity in the second case. It would be wrong to drop the \Delta V in the first equation, so it is preferred to keep the dV in the second equation.