 Solution

The non-axis nullclines are $u_1+A{u}_2=1$ and $B{u}_1+u_2=1$. For $A>1$, $B<1$, the first has intercepts $(1,0),(0,1/A)$ and the second has $(1/B,0),(0,1)$. Their axis intercept order rules out a positive intersection. Below the first line $u_1$ increases and above it decreases; below the second $u_2$ increases and above it decreases. Thus $S_2$ is a saddle point and $S_3=(0,1)$ is stable.

For strictly positive initial populations, both coordinates stay positive and are bounded above by their individual logistic equations. There are no interior periodic orbits: the Dulac function $1/(u_1{u}_2)$ makes the divergence of the multiplied vector field $-1/u_2-\rho /u_1<0$, so the Bendixson-Dulac theorem applies. The stable manifold of $S_2$ is the invariant red-only axis, and $S_1$ is repelling. The phase portrait, or the Poincaré-Bendixson theorem with these boundary directions, therefore givesThe qualification $u_2(0)>0$ matters: a grey population identically absent cannot drive extinction. In dimensional variables, positive grey presence leads to $N_1\to 0$, $N_2\to K_2$ in this no-hunting case.