If I try to write the two-qubit state $$ |\psi \rangle = \frac{|0 \rangle |0 \rangle + |0 \rangle |1 \rangle}{\sqrt{2}}$$ as $$ |\psi \rangle = \lambda_0 |\phi_0 \rangle |\phi_0 \rangle + \lambda_1 |\phi_1 \rangle |\phi_1 \rangle $$ for states $|\phi_0 \rangle = a |0 \rangle + b |1 \rangle$ and $|\phi_1 \rangle = c |0 \rangle + d |1 \rangle$, and real constants $\lambda_0$ and $\lambda_1$, I arrive at some contradiction that the quantity $\lambda_0 a b + \lambda_1 c d$ must equal both $1/\sqrt{2}$ and $0$, which makes me think a Schmidt decomposition for this state doesn't exist. However, the Schmidt decomposition theorem states that it can be done for any pure state $|\psi \rangle$ of a composite system.
I must have misunderstood what the Schmidt decomposition actually is or I am doing things the wrong way, I would appreciate it if someone could enlighten me on this.