Why is it wrong?
$$|x| = \sqrt{x^2} = (x^2)^{1/2} = x^{2 \ \times \ 1/2} = x$$
Why is it wrong?
$$|x| = \sqrt{x^2} = (x^2)^{1/2} = x^{2 \ \times \ 1/2} = x$$
As mentioned in the comments, $(a^b)^c=a^{bc}$ is not always true when $a$ is negative. For example, take $x=-1$ in your proof:
$$[(-1)^2]^\frac{1}{2}=1^{\frac{1}{2}}=\sqrt{1}=1$$
$$(-1)^{2\times \frac{1}{2}}=(-1)^1=-1$$
$$\therefore [(-1)^2]^\frac{1}{2} \neq (-1)^{2\times \frac{1}{2}}$$