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TC and VSC are NEVER fully deactivated by pressing the TC button down for more than 3 seconds.
TC is deactivated by simply pressing the TC button for a short period, but this will keep VSC ON and TC will re-engage past a certain speed limit (don't remember off by heart now, but its something low like 40km/h).
The above is true regardless of if the vehicle is moving or stationary.
Sometimes the light will flash and it won't intervene (it will but you won't notice it, possibly due to loss of traction by lift/bump on one wheel or something similar due to torsen LSD) or other times it will emergency brake for you.
The only way to turn TC off fully as mentioned before is Pedal Dance (which keeps ABS functionality) or to pull the ABS fuse which also disables ABS functionality. I do not suggest doing either of these on the public roads. The car does have an EDR and if it is shown you have used either method you risk you claim being declined by your insurance* as this was beyond the "normal" scope of operation that the car was designed for. In another words, the manufacturer did not specify this in the user manual therefore it can be considered as a modification to the vehicle, even though it is temporary.
If you want to know how I know, it's because I used the 3 sec off system, and the car saved my a** when I lost control and started going backwards due to a 180 spin. It managed to slow me down (by performing an emergency brake) to 17km/h before I rolled off a cliff. I have a few emails from Toyota describing the system operation.
The pedal dance/abs fuse was not discussed with Toyota as I didn't see the need to.
*I am not an expert on this subject, but this is what I have concluded with dealing with my insurance company here in New Zealand. I had a nice friendly chat to them regarding the TC system affecting insurance and that was the conclusion I came to after the talk.
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