Could someone point out to me where the error(s) are in my reasoning below?
First-order logic (with the sequent calculus as the proof system) is both sound and complete. This is the same as saying the set $S$ of semantic consequences of a theory (the statements that are true in every model for which the statements of the theory are also true) is the same as the set $T$ of its syntactic consequences (using the sequent calculus). This is because soundness means that $T$ is a subset of $S$ and completeness means that $S$ is a subset of $T$, i.e. that $S = T$.
This means that every theory is consistent: it is clear that $S$ cannot contain both a statement and its negation (since a model can only satisfy one of the two), but by the above the same must be true for $T$, so that the theory is consistent.