To summarize, the two results are different because the second method uses equations that are linearly dependent for some functions. By themselves, they do not contain enough information to determine a unique solution.
Long answer: Take a look at Eqs 12-14 in the link that you cited and imagine all of the $a_i=1$, as in your example. All of those equations would then be the same, not independent. Now look at Eq 15 and imagine all of the $a_i=1$. The first $M$ rows would be identical, so the determinant would be zero.
But, it's even worse than that. You don't have to imagine all of the $a_i=1$. It is only $a_{L-M+1} \dots a_{L+M}$ that appear in Eqs 12-14. So in your example, you could change $a_0$ and $a_1$ and get the same non-answer. And, of course, it's the $a_i$'s being equal to one another, not necessarily equal to 1, that makes the determinant zero.
The following code generates Eqs 7-11 and Eqs 12-14 for the subject polynomial function and attempts to solve the system of equations.
l = 3; m = 2;
rules = {q[0] -> 1, a[_?(# < 0 &)] -> 0, q[_?(# > m &)] -> 0};
eqns7$11 = Table[Sum[a[j] q[irow - j], {j, 0, irow}] == p[irow],
{irow, 0, l}] /. rules;
eqns12$14 = Table[Sum[a[l - j + irow] q[j], {j, 0, m}] == 0,
{irow, m}] /. rules;
(eqns = Join[eqns7$11, eqns12$14] /. a[_] -> 1) // Column
soln = First@Solve[eqns]
The Solve
solution allows either $q_1$ or $q_2$ to be a free parameter. Setting $q_2=0$ gives $q_1=-1$, in agreement with the PadeApproximant
result.
Let's try different choices of q[1]
and see what we get for the approximant
ϕ = Sum[p[k] x^k, {k, 0, l}]/Sum[q[k] x^k, {k, 0, m}]
ϕ //. Flatten@{q[0] -> 1, soln, q[1] -> -1}
ϕ //. Flatten@{q[0] -> 1, soln, q[1] -> 0} // Simplify
ϕ //. Flatten@{q[0] -> 1, soln, q[1] -> 1} // Simplify
(*
(p[0] + x p[1] + x^2 p[2] + x^3 p[3])/(q[0] + x q[1] + x^2 q[2])
1/(1 - x)
1/(1 - x)
1/(1 - x) *)
Simplify
was used in the above to cancel common polynomial factors in numerator and the denominator.