There is exact solution to this problem. First, let put $x=x(u), y=y(v)$, then we can use DSolve
as follows
DSolve[{D[x[u], u]^2+(x[u]*D[x[u], u])^2==1, x[0] == 0}, x, u]
(*{{x -> Function[{u},
InverseFunction[
1/2 (ArcTanh[#1/Sqrt[1 + #1^2]] + #1 Sqrt[
1 + #1^2]) &][-u]]}, {x ->
Function[{u},
InverseFunction[
1/2 (ArcTanh[#1/Sqrt[1 + #1^2]] + #1 Sqrt[1 + #1^2]) &][u]]}}*)
Similar solution we have for $y(v)$. We can plot solutions as follows
lst = Table[{u,
Evaluate[
InverseFunction[
1/2 (ArcTanh[#1/Sqrt[1 + #1^2]] + #1 Sqrt[1 + #1^2]) &][
u]]}, {u, 0, 1, .01}];
f = Interpolation[lst];
{Plot3D[f[u], {u, 0, 1}, {v, 0, 1}, Exclusions -> None,
AxesLabel -> Automatic, PlotLabel -> "x",
ColorFunction -> "Rainbow", PlotTheme -> "Marketing",
MeshStyle -> White],
Plot3D[f[v], {u, 0, 1}, {v, 0, 1}, Exclusions -> None,
AxesLabel -> Automatic, PlotLabel -> "y",
ColorFunction -> "Rainbow", PlotTheme -> "Marketing",
MeshStyle -> White]}

Please, pay attention that there are 4 solutions in combination of signs x[u], y[v]
. It is why numerical solution not unique, and therefore we have a problem with computation. Second solution

Third solution
Fourth solution

We can solve this system with Matematica FEM using special regularization as follows
ClearAll["Global`*"]
Needs["NDSolve`FEM`"]
reg = Rectangle[{0, 0}, {1, 1}]; mesh =
ToElementMesh[reg, MaxCellMeasure -> .001]
eq1 = Inactivate[
d1 Laplacian[x[u, v], {u, v}] + D[x[u, v], u]^2 +
D[y[u, v],
u]^2 + (x[u, v]*D[x[u, v], u] + y[u, v]*D[y[u, v], u])^2,
D | Laplacian];
eq2 = Inactivate[
d2 Laplacian[y[u, v], {u, v}] + D[x[u, v], v]^2 +
D[y[u, v],
v]^2 + (x[u, v]*D[x[u, v], v] + y[u, v]*D[y[u, v], v])^2,
D | Laplacian];
bc = {DirichletCondition[x[u, v] == 0, u == 0],
DirichletCondition[y[u, v] == 0, v == 0]};
sol = NDSolve[{Activate[eq1] == 1, Activate[eq2] == 1,
bc} /. {d1 -> 10^-3, d2 -> 10^-3}, {x, y},
Element[{u, v}, mesh]];
Visualization
{Plot3D[x[u, v] /. sol[[1]], {u, 0, 1}, {v, 0, 1}, Exclusions -> None,
AxesLabel -> Automatic, PlotLabel -> "x",
ColorFunction -> "Rainbow", PlotTheme -> "Marketing",
MeshStyle -> White],
Plot3D[y[u, v] /. sol[[1]], {u, 0, 1}, {v, 0, 1}, Exclusions -> None,
AxesLabel -> Automatic, PlotLabel -> "y",
ColorFunction -> "Rainbow", PlotTheme -> "Marketing",
MeshStyle -> White]}
Compare to analytical solution this is second case shown in Figure 2. To compute all cases, we change a sign of d1,d2
, for instance, first and fourth solution are given by
sol1 = NDSolve[{Activate[eq1] == 1, Activate[eq2] == 1,
bc} /. {d1 -> -10^-3, d2 -> -10^-3}, {x, y},
Element[{u, v}, mesh]];
sol4 = NDSolve[{Activate[eq1] == 1, Activate[eq2] == 1,
bc} /. {d1 -> 10^-3, d2 -> -10^-3}, {x, y},
Element[{u, v}, mesh]];