Typical blinder: after $L_u=0$ instead of integrating $(L_{u'})'=0\implies L_{u'}=c$ started to really differentiate $L_{u'}$, getting to $u''$...
Error $u'L_{u'}-L=c$ : it would work if $L$ did not depend on the argument $r$, but here it did not depend on function $u$.
Bonus:
The same problem (surface of revolution) but now argument is $z$ (used to be $u$) and the function is $r=R(z)$.
Then
$$
S=2\pi \int_{z_0}^{z_1} \sqrt{1+R'^2} R\,dz.
$$
Solve it! (the answer should be indeed the same as in the original problem)