Solution (source code)

= Solution

Direct multiplication shows $LL^t\ne L^tL$ for $\beta\ne0$, so $L$ is a <non-normal matrix>. Meanwhile
$$
\dot E=2(x,y)\frac{L+L^t}{2}\binom xy
=-2\varepsilon(x^2+y^2)-4\beta xy.
$$
The symmetric part has eigenvalues $-\varepsilon\pm|\beta|$, so instantaneous growth is possible exactly when $|\beta|>\varepsilon$. Under the intended $0\leq\beta<1$ regime this is $\boxed{\beta>\varepsilon}$.