I am reading Ta-Pei Cheng's book "Relativity, Gravitation and Cosmology" and having some difficulties with question 6.3. It basically asks to work out the spatial distance in a rotating cylinder to show that the Euclidean relation between the circumference and radius is violated. In the solutions he starts by defining coordinates $$(ct, r, \phi, z) \text{ in the lab frame}$$ and $$(ct, r_0, \phi_0, z) \text{ for an observer on the rotating disk}$$ related by $$r = r_0 \text{, } \phi = \phi_0 + \omega t\text{.}$$ The line element in terms of coordinates at rest with respect to the observer on the rotating disk is (ignoring $z$ coordinate) $$ds^2 = -c^2dt^2 + dr_0^2 + r_0^2d\phi_0^2.$$ By substituting $$d\phi_0 = d\phi - \omega dt$$ he rewrites $ds^2$ in terms of the lab coordinates, identifies the metric elements and uses a previously derived result to eventually work out that $$dl^2 = dr^2 + \frac{r^2d\phi^2}{1 - (\omega r/c)^2}$$ "showing clearly length contraction of the circumference, but not the radius."
Using the above result you get that the circumference $C$ is $$C = \gamma(\omega r)2\pi r.$$ How is this a contraction if this is greater than $2\pi r$?
Also, why he uses the same time in both the lab frame and the observer on a disk frame? Isn't $dt_{\text{on a disk}} =\gamma(\omega r) dt_{\text{lab}}$? I am clearly misunderstanding something but I just can't figure out what.