What mistake did he make in the process? (Answer using a complete sentence.)

Simplification of such an expression can be accomplished by canceling like factors. Canceling like terms is not an operation that makes any sense in this context. It is a mistake to subtract like terms from numerator and denominator.
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This expression cannot be simplified.
the mistake was in the 3rd line: cancelng the like terms x^2.
you have to cancel factors
example: [tex]\frac{x^2+7x+12}{x^2+2x-8}=[/tex] [tex]\frac{(x+4)(x+3)}{(x+4)(x-2)}=(\frac{x+4}{x+4})(\frac{x+3}{x-2})=[/tex] [tex](1)(\frac{x+3}{x-2})=[/tex] [tex]\frac{x+3}{x-2}[/tex]
you cannot do [tex]\frac{x^2+7x+12}{x^2+2x-8}=\frac{7x+12}{2x-8}[/tex]
if you were to evaluate it, you would get different answers
The mistake was that Micah did not factor to make 'ones' and cancel terms.