A cut is not merely a set or pair of sets. Sure, ##\{q \in \mathbb{Q}:q^2<2\}## is a set whose l.u.b. is ##\sqrt{2}##, but it does not meet the criteria for cut. Usually, a cut is an pair of sets A, B that are disjoint and partition ##\mathbb{Q}##; furthermore, A is downward closed and contains no greatest element and B is upward closed. All that is really necessary to define a cut, however, is a downward closed set with no greatest element (since that set's complement would always be our other set).
The problem with your set is it is not downward closed. ##q^2<2## is the same as ##-\sqrt{2}<q<\sqrt{2}##, but a cut would have to look like ##q<\sqrt{2}## without a lower bound.
If you want to know why it needs to be downward closed, beyond the fact that that's just the definition of a cut, I would say it has to do with uniqueness more than anything. Many sets have a least upper bound of ##\sqrt{2}##, but they are all subsets of ##\{q \in \mathbb{Q}:q^2<2 \vee q<0\}##. There is no other downward closed set with this l.u.b.