@jk22 - you never write out what you are actually doing. You just throw out maths. That leaves us to guess, and also suggests strongly that you aren't writing it out because you don't understand yourself. The more you write out the more we can help.
It should be obvious that your conclusion is wrong. Quite apart from
@vanhees71's comment, consider two objects in the same freefall orbits, but opposite directions. They encounter each other twice per orbit. How could two straight lines do that?
More generally your ##x^\mu## coordinates are poorly constrained. You have defined them along a particular geodesic, but that does not say anything about their behaviour off the geodesic. Your equation ##0=\frac{dx^\mu}{d\tau}## only applies along your chosen geodesic. Furthermore, ##x^\mu=\xi^\mu_p(y^\nu)## makes no sense - you have different numbers of free indices. Presumably you meant ##x^\mu=\xi^\mu_\nu(y^\nu)##.