My attempt:
The outer problem for leading order term: $$y_0 y_0' - y_0 = 0$$ This has solution: $y_0(x) = 0$ or $y_0(x) = x + c$.
I notice that $y(x) < 0$ on this interval, so I assume the boundary layer is at $x = 1$. So the outer solution is: $$y_0(x) = x - 1$$ Note that this alone solves the differential equation.
I approached the inner problem with the scaling: $ z = \frac{1 -x}{\epsilon}$. This leads to: $$ y_0''(z) - y_0(z) y_0'(z) = 0 $$ The solution for this is either $y_0(z) = C$ or, $$ y_0(z) = \sqrt{2} C \tan\left({\frac{(z+D)C}{\sqrt{2}}}\right)$$ With the B.C. $y_0(z = 0) = 0$, then $D = \frac{\sqrt{2} n \pi}{C}$, and the solution becomes: $$ y_0(z) = \sqrt{2} C \tan\left({\frac{zC+\sqrt{2}n\pi}{\sqrt{2}}}\right)$$ Classical matching: $$ \lim_{x \rightarrow 1} y_0(x) = \lim_{z \rightarrow \infty} y_0(z) $$ Or, $$ 0 = \sqrt{2} C \tan\left({\frac{\infty \cdot C+\sqrt{2}n\pi}{\sqrt{2}}}\right)$$ Thus, it requires $C = n = 0$. This means the outer solution is the leading approximate solution for this problem.
My question: I don't think this is correct, but I am not sure how else to approach this. ( I am not supposed to use other matching methods).