Continued Fraction Identity Problem 
Question: What went wrong in my work to$$\ln(1-x)=-\cfrac x{1-\cfrac x{2+x-\cfrac {2x}{3+2x-\cfrac {3x}{4+3x-\ddots}}}}\tag{1}$$

I started with the expansion$$\begin{align*}\ln(1-x) & =-x-\dfrac {x^2}2-\dfrac {x^3}3-\dfrac {x^4}4-\&\text{c}.\\ & =-x\left\{1+\left(\dfrac x2\right)+\left(\dfrac x2\right)\left(\dfrac x{3/2}\right)+\&\text{c}.\right\}\tag{2}\end{align*}$$
And by Euler's Continued Fraction, $(2)$ can be rewritten into$$\begin{align*} & -x\left\{1+\left(\dfrac x2\right)+\left(\dfrac x2\right)\left(\dfrac x{3/2}\right)+\left(\dfrac x{2}\right)\left(\dfrac x{3/2}\right)\left(\dfrac x{4/3}\right)+\&\text c.\right\}\\ & =-\cfrac {x}{1-\cfrac x{2+x-\cfrac {2x}{3+2x-\ddots}}}\end{align*}\tag{3}$$
However, if we set $x=2$, then we have the LHS as $\ln(1-2)=\ln -1=\pi i$. The RHS becomes
$$-\cfrac 2{1-\cfrac 2{4-\cfrac 4{7-\cfrac 6{10-\ddots}}}}=\pi i\tag{4}$$
But the LHS is real while the RHS is imaginary. What went wrong?

You went wrong with conversion from the series to the Euler CF. It was almost right, but the numeric numerator factor should be squared. That is,
$$ \ln (1-x) = -\cfrac{x}{1 - \cfrac{1^2x}{2 + x - \cfrac{2^2x}{3 + 2x - \cfrac{3^2x}{\ddots}}}}. $$
