Let’s use some Boolean algebra, in order to show a different point of view.
Let $C=A\cup B$; for a subset $X$ of $C$, denote $X^c=C\setminus X$; thus
$$
A\setminus B=A\cap B^c,\qquad B\setminus A=B\cap A^c=A^c\cap B
$$
Then
\begin{align}
A&=A\cap C && \text{because $A\subseteq C$} \\
&=A\cap (B\cup B^c) && \text{because $C=B\cup B^c$} \\
&=(A\cap B)\cup(A\cap B^c) && \text{distributivity} \\
&=(A\cap B)\cup(A^c\cap B) && \text{hypothesis} \\
&=(A\cup A^c)\cap B && \text{distributivity} \\
&=C\cap B && \text{because $A\cup A^c=C$} \\
&=B && \text{because $B\subseteq C$}
\end{align}
You also have
\begin{align}
A\cap B^c &=(A\cap B^c)\cap(B\cap A^c) && \text{hypothesis} \\
&=A\cap(B^c\cap(B\cap A^c)) && \text{associativity} \\
&=A\cap((B^c\cap B)\cap A^c) && \text{associativity} \\
&=A\cap(\emptyset\cap A^c) && \text{because $B\cap B^c=\emptyset$} \\
&=A\cap\emptyset \\
&=\emptyset
\end{align}