The patient's presentation of diffuse muscle pain and weakness, along with laboratory findings of elevated BUN, creatinine, and potassium levels, as well as the presence of blood and protein in the urine, suggest acute renal failure. The presence of muddy brown casts and RBCs in the urine, along with the history of recent influenza, are indicative of rhabdomyolysis-induced acute renal failure. Rhabdomyolysis occurs when muscle breakdown releases myoglobin into the bloodstream, leading to renal damage. The combination of muscle symptoms, laboratory findings, and urine analysis supports this diagnosis.