Proof.
Recall that the local ring \mathcal{O}_{X, \overline{x}} is the strict henselization of \mathcal{O}_{U, u}, see Properties of Spaces, Lemma 66.22.1. By Varieties, Lemma 33.6.2 we find that U is geometrically reduced at u if and only if \mathcal{O}_{U, u} is geometrically reduced over k. Thus we have to show: if A is a local k-algebra, then A is geometrically reduced over k if and only if A^{sh} is geometrically reduced over k. We check this using the definition of geometrically reduced algebras (Algebra, Definition 10.43.1). Let K/k be a field extension. Since A \to A^{sh} is faithfully flat (More on Algebra, Lemma 15.45.1) we see that A \otimes _ k K \to A^{sh} \otimes _ k K is faithfully flat (Algebra, Lemma 10.39.7). Hence if A^{sh} \otimes _ k K is reduced, so is A \otimes _ k K by Algebra, Lemma 10.164.2. Conversely, recall that A^{sh} is a colimit of étale A-algebra, see Algebra, Lemma 10.155.2. Thus A^{sh} \otimes _ k K is a filtered colimit of étale A \otimes _ k K-algebras. We conclude by Algebra, Lemma 10.163.7.
\square
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