The Schwarzschild metric describes the gravity of a spherically symmetric mass $M$ in spherical coordinates:
$$ds^2 =-\left(1-\frac{2GM}{c^2r}\right)c^2 \, dt^2+\left(1-\frac{2GM}{c^2r}\right)^{-1}dr^2+r^2 \,d\Omega^2 \tag{1}$$
Naively, I would expect the classical Newtonian limit to be $\frac{2GM}{c^2r}\ll1$ (Wikipedia seems to agree), which yields
$$ds^2 =-\left(1-\frac{2GM}{c^2r}\right)c^2 \, dt^2+\left(1+\frac{2GM}{c^2r}\right)dr^2+r^2 \,d\Omega^2 \tag{2}$$
However, the correct "Newtonian limit" as can be found for example in Carroll's Lectures, eq.(6.29), is
$$ds^2 =-\left(1-\frac{2GM}{c^2r}\right)c^2 \, dt^2+\left(1+\frac{2GM}{c^2r}\right)\left(dr^2+r^2 \,d\Omega^2\right) \tag{3}$$
Question: Why is the first procedure of obtaining the Newtonian limit from the Schwarzschild solution incorrect?