The incorrect step in Misha's proof is:
Step 2 is incorrect. In order to be distinct lines, it must be true that b is equal to c.
This statement is incorrect because for two distinct lines to exist, their y-intercepts (b and c) must be different (b ≠ c). Misha correctly stated that to be distinct lines, it must be true that b≠c, but the faulty conclusion led her through an erroneous logical path that contradicts her initial assumptions about the lines being distinct.