I want to provide an alternative answer using differential forms. The general process is justified in the appendix. Let $\mu: X' \to \mathbb{A}^2$ denote the blowup at $(x,y)$.
Since $\omega_{\mathbb{A}^2}$ is freely generated by $dx \wedge dy$, we can compute $\mu^*\omega_{\mathbb{A}^2}$ on each patch by pulling back $x$ and $y$, which you correctly described above. On the patch $U_1 = \mathbb{A}^2_{u, v}$, where $T_1 \neq 0$, we see that $\mu^*\omega_{\mathbb{A}^1}$ is trivialized by $$\mu^*(dx \wedge dy) = du \wedge d(uv) = u(du \wedge dv).$$
Hence, we may describe $K_{X'/\mathbb{A}^2}|_{U_1} = \{u = 0\} = E|_{U_1}$.
Similarly, on the other patch $U_0$, we'll see $E|_{U_0}$. (I'll leave it to you to check.)
Note: The complement of $U_1$ in $X'$ is a single point and, in particular, has codimension $\geq 2$ in $X'$. As such, the restriction map $\operatorname{Pic}(X') \to \operatorname{Pic}(U_1)$ is an isomorphism so checking the other patch is unnecessary.
Appendix: The Jacobian Description
Suppose $\mu: Y \to X$ is a birational map of smooth $n$-dimensional varieties. We can define $\omega_{Y/X}$ to be the invertible sheaf $\omega_{Y} \otimes \mu^*\omega_{X}^{-1}$. To describe this sheaf locally, fix $x \in X$ and a set of local coordinates $x_1, \dots, x_n$ of $X$. Then, $\omega_{X}$ is freely generated in a neighborhood $U$ by $dx_1 \wedge \cdots \wedge dx_n$. Hence in a neighborhood $V$ of $y \in \mu^{-1}(U)$, with coordinates $y_1 \dots, y_n$, we find that $\mu^*\omega_{X}$ to be freely generated by $$\mu^*(dx_1 \wedge \cdots \wedge dx_n) = d\mu^*x_1 \wedge \cdots \wedge d\mu^*x_n = \operatorname{Jac}_V(\mu) dy_1 \wedge \cdots \wedge dy_n.$$
As such, covering $Y$ by these $V$'s, we find trivializations $\mathcal{O}_V \to \omega_Y \otimes \mu^*\omega_{X}^{-1}|_V$ by sending $f \mapsto f \operatorname{Jac}_V(\mu)^{-1}$. Using the correspondence between line bundles and Cartier divisors (see, for example, Hartshorne's proposition II.6.13), we conclude that this line bundle can be associated with effective Cartier divisor $\{(V, \operatorname{Jac}_V(\mu))\}.$