Ai got it right. I also remember my calc class with Dr Palow from F.I.U., he used to teach us these wordings. Yours say double the sum of x and y. So we get x + y. That squared, 2(x+y) squared.
Giving an AI answer here is meaningless, you can find ones that say one or the other.
Claude 4.6 will say its ambiguous and give you both. But does state that the equation in OP is considered standard form (since exponents are evaluated first).
And there is no comma after the y that would clearly indicate its a separate operation.