This problem can (mostly) be solved if we convert to polar coordinates and solve u as a function of r,t. The pde in the narrative does not match the code, but I will go with the code, changing the variables from x,y to r.
pde = Laplacian[u[r, t], {r, theta]}, "Polar"] + u[r, t] (2 - u[r, t]) == D[u[r, t], t] (*D[ u[r, t], r]/r + D[ u[r, t], r, r] + (2 - u[r, t]) u[r, t] == D[ u[r, t], t]*)
NDSolve doesn't like the 1/r in the pde at r = 0, so instead of solving from 0, I will have r go from some small value epsilon to 1. In doing that, I will have to add the boundary condition at r = epsilon. The derivative of u would be 0 at the center of the disk anyway.
epsilon = .0001; bc1 = (D[ u[r, t], r] /. r -> 1) == 0; bc2 = (D[ u[r, t], r] /. r -> epsilon) == 0;
The given initial condition does not match up with the boundary condition at r = 1 very well. NDSolve in trying to reconcile the two conditions is too unstable to get anywhere, so I modified the ic slightly, by making it a combination of 2 functions. Most of the disk retains the given ic, with a transition to a funtion that has a 0 derivative at r = 1.
f1 = r^2 - 1 f2 = -1000 (r - 1)^2
Find the transition point, where the two are equal:
r1 = r /. FindRoot[f1 - f2, {r, .9}] (*0.998002*)
Form the ic transition from f1 to f2 with a combination of UnitStep functions.
ic = u[r, 0] == (UnitStep[r - epsilon] - UnitStep[r - r1]) f1 + (UnitStep[r - r1] - UnitStep[r - 1]) f2
Now plug into NDSolve.
s = NDSolve[{pde, bc1, bc2, ic}, u, {r, epsilon, 1}, {t, 0, 1}, PrecisionGoal -> Infinity, MaxStepFraction -> 1/1000, MaxSteps -> {50000, Automatic}];
NDSolve still complains about inconsistent bc's and ic's and doesn't run all that long, but it gives a enough of a solution to see the behavior of u.
u[r_, t_] = u[r, t] /. s[[1]]; gifs = Table[Plot[u[r, t], {r, epsilon, 1}, PlotRange -> {-2, 0}, PlotLabel -> t "t"], {t, 0, .5, .01}]; ListAnimate[gifs]

Subscriptwhile defining symbols (variables).Subscript[x, 1]is not a symbol, but a compound expression, if you do $x_1=2$ you are actually doingSet[Subscript[x, 1], 2]which is to assign a Downvalue toSubscriptand not an Ownvalue to an indexedxas you may intend. Read how to properly define indexed variables here. $\endgroup$a(in your casea=1-u) is a scalar. I am guessingacan depend on{x,y}, but not onu, that's just not implemented inNDSolve. $\endgroup$