In a Cartesian coordinate system,
$$\mathbf{r}=x\mathbf{\hat x}+y\mathbf{\hat y}+z\mathbf{\hat z}$$
where $\mathbf{r}$ is the "position vector." Additionally, $r$ (non bold-faced) is usually taken to equal the distance from the origin to your point of interest, i.e.
$$r=\sqrt{x^2+y^2+z^2}$$
which is true in any coordinate system (assuming a Euclidean norm). With these two definitions, it is self-evident that
$$\mathbf{r}=r\mathbf{\hat r}$$
This expression just says that your position vector points in the direction of your normalized position vector, and that its magnitude is $r$. Once again, this expression is true for any coordinate system.
It's really important to note that, if a point of interest $p$ equals $(r,\theta,\phi)$ in spherical coordinates (for example), then $\mathbf{r}$ does not equal $r\mathbf{\hat r}+\theta \mathbf{\hat \theta} +\phi \mathbf{\hat \phi}$. You can see this by simply considering the units of the vectors and the quantities $r$, $\theta$, and $\phi$. Instead, to find $\mathbf{r}$ in spherical coordinates (or any other coordinate system), you will need to use the known expressions for $x$, $y$, $z$, $\mathbf{\hat x}$, $\mathbf{\hat y}$, and $\mathbf{\hat z}$.
It's equally important to realize that the unit vectors $\mathbf{\hat r}$
, $\mathbf{\hat \theta}$, and $\mathbf{\hat \phi}$ change with position (and time). So they're actually functions of $x$, $y$, and $z$ (or $x(t)$, $y(t)$, and $z(t)$).
As an aside, unfortunately, many textbooks also use $r$ to denote the distance from a point to the z-axis in circular / cylindrical coordinates. As somebody else already said, these two definitions are not compatible with each other and can cause quite a bit of confusion. Better notation is $(\rho, \phi)$ or $(s, \phi)$, so that
$$s=\rho=\sqrt{x^2+y^2}$$
With each new textbook, paper, etc. it's important to understand how they define their basic coordinates.
Finally, to answer your question, the time derivative of $\mathbf{r}$ is
$$\frac{d\mathbf{r}}{dt}=\frac{d(r\mathbf{\hat r})}{dt}$$
... for the simple reason that $\mathbf{r}$ ALWAYS equals $r\mathbf{\hat r}$. Note that this expression is somewhat difficult to calculate since $\mathbf{\hat r}$ is actually a function of position and time.
In any coordinate system,
$$\frac{d\mathbf{r}}{dt}=\frac{d}{dt}(x\mathbf{\hat x}+y\mathbf{\hat y}+z\mathbf{\hat z})$$
$z = 0$ in polar coordinates, so that
$$\frac{d\mathbf{r}}{dt}=\frac{d}{dt}(x\mathbf{\hat x}+y\mathbf{\hat y})=\frac{dx}{dt}\mathbf{\hat x}+\frac{dy}{dt}\mathbf{\hat y}=\frac{d (\rho \cos{\phi})}{dt}\mathbf{\hat x}+\frac{d (\rho \sin{\phi})}{dt}\mathbf{\hat y}$$
Your quoted expression is correct because it is a simple statement that
$$\mathbf{r}(t)=x(t)\mathbf{\hat x}+y(t)\mathbf{\hat y}$$
which is how we defined the position vector in the first place.