I give another simple proof using the leftover hash lemma.
The proof goes as follows, where I'll abuse the notation and assume that q is prime.
Game0
The adversary can see
$$(A,b,c,u,v,w,s)
= (A, As+e, At+f, rA, rb+x\lfloor q/2 \rceil, rc+y\lfloor q/2 \rceil, s).$$
Game1
The view is changed as
$$(A,b,c,u,v,w,s)
= (A, As+e, c, rA, rb+x\lfloor q/2 \rceil, rc+y\lfloor q/2 \rceil, s),$$
where we change $c = At+f$ with random $c$.
From the LWE assumption, Game0 is indistinguishabe from Game1.
Game2
The view is changed as
$$(A,b,c,u,v,w,s)
= (A,As+e,c,u,rb+x\lfloor q/2 \rceil,z+y\lfloor q/2 \rceil, s)$$
where we replace $rA$ and $rc$ with random $u \gets \mathbb{Z}_q^n$ and $z \gets \mathbb{Z}_q$.
In this game, $y$ is completely hidden, since $z$ is chosen uniformly at random.
Game1 vs Game2
If the term $v=rb+x\lfloor q/2 \rceil$ disappears,
then we can invoke the leftover hash lemma as Regev originally did.
We can still invoke the generalized leftover hash lemma in [DORS08] even if the term $v$ remains.
Very roughly speaking,
if $m \geq (n+2) \lg{q} + 2(1/\epsilon) + O(1)$,
then we can say the distance between Game1 and Game2 is at most $\epsilon$.
Generalized leftover hash lemma
Let us define the average min-entropy of $R$ given $I$ as follows:
$$\tilde{H}_{\infty}(R \mid I)
= -\log\left(\mathrm{Exp}_{i \gets I}\left[
\max_{r} \Pr[R = r \mid I = i]
\right]\right).
$$
Intuitively speaking, this entropy is the logarithm of predictability of $R$ given $I$. As we expected, if $I$ leaks the information of $R$, the average min-entropy of $R$ given $I$ decreases.
Let us consider the average min-entropy of $r$ given $v = rb + x\lfloor q/2 \rceil$.
By invoking [Lemma 2.2 (b), DORS08], we have that
$$
\tilde{H}_{\infty}(r \mid v)
\geq H_{\infty}(r) - \lg{q}.
$$
That is, the average min-entropy of $r$ given $v$
is at least the min-entropy of $r$, which is $m$, minus $\lg{q}$.
Now, let us review the generalized leftover hash lemma in [DORS08]:
For a family of universal hash functions $\{H_d : \{0,1\}^n \to \mathcal{S}\}$
for any random variables $R$ and $I$,
we have
$$
\Delta\Big(
(H_{D}(R),D,I),
(U_{\mathcal{S}},D,I)
\Big) \leq \frac{1}{2} \sqrt{2^{-\tilde{H}_{\infty}(R \mid I)} \cdot \#\mathcal{S}},
$$
where $U_{\mathcal{S}}$ is a random variable distributed according to the uniform distribution over $\mathcal{S}$.
By replace $D$ with $(A,c)$, $R$ with $r$,
$H_{D}(R)$ with $(rA,rc)$, and $I$ with $v$,
$\mathcal{S}$ with $\mathbb{Z}_q^{n+1}$,
we obtain the upperbound of the statistical distance as $\frac{1}{2} \sqrt{2^{\tilde{H}_{\infty}(r \mid rb)} \cdot q^{n+1}}$, which is at most $\epsilon$ if $m = (n+2)\lg{q} + 2\log(1/\epsilon) + \Omega(1)$.
- [DORS08] Yevgeniy Dodis, Rafail Ostrovsky, Leonid Reyzin and Adam Smith: "Fuzzy Extractors: How to Generate Strong Keys from Biometrics and Other Noisy Data" in SIAM Journal of Computing, 38(1):97--139, 2008. (Prelim. version is Dodis, Reyzin and Smith in EUROCRYPT 2004).