Your core physics is correct.
The problem is solved by considering the loss in PE of the mass, falling through a distance h, and equating it to the PE stored in the wire when stretched.
This gives mgh = (T/2).2dL ---(1) (as you have in your working)
Pythagoras on the triangle, assuming dL2 is negligible, gives dL = h2/L --- (2) (as in your working)
Also correct is that the Young Modulus is stress/strain and this is used to eliminate T from the formula. (1)
So somewhere after that point you have made an error in the algebra.
Can I suggest you follow these steps.
In the modulus formula (3) rearrange to get T from
E = (T/A)/(2dL/L) ---- (3) stress/strain
Substitute the expression for T in (1)
Substitute for dL = h2/L
You should arrive at the end with
mgh = 2AEh4/L3
This will give the correct value of h