According to the requirements (first use TACACS+, then allow login with no authentication), we have to use "aaa authentication login ... group tacacs+ none" for AAA command.
The next thing to check is the if the "aaa authentication login default" or "aaa authentication login list-name" is used. The 'default' keyword means we want to apply for all login connections (such as tty, vty, console and aux). If we use this keyword, we don't need to configure anything else under tty, vty and aux lines. If we don't use this keyword then we have to specify which line(s) we want to apply the authentication feature.
From above information, we can find out answer 'R1#sh run | include aaa aaa new-model aaa authentication login default group tacacs+ none aaa session-id common R1#sh run | section vty line vty 0 4 password 7 0202039485748 If you want to learn more about AAA configuration, please read our AAA TACACS+ and RADIUS Tutorial - Part 2.
For your information, answer 'R1#sh run | include aaa
aaa new-model
aaa authentication login telnet group tacacs+ none
aaa session-id common
R1#sh run | section vty
line vty 0 4
R1#sh run | include username
R1#' would be correct if we add the following command under vty line ("line vty 0 4"): "login authentication telnet" ("telnet" is the name of the AAA list above)

sw2#show errdisable recovery
ErrDisable Reason Timer Status
----------------- --------------
arp-inspection Disabled
bpduguard Disabled
channel-misconfig (STP) Disabled
dhcp-rate-limit Disabled
dtp-flap Disabled
gbic-invalid Disabled
inline-power Disabled
l2ptguard Disabled
link-flap Disabled
mac-limit Disabled
link-monitor-failure Disabled
loopback Disabled
oam-remote-failure Disabled
pagp-flap Disabled
port-mode-failure Disabled
pppoe-ia-rate-limit Disabled
psecure-violation Disabled
security-violation Disabled
sfp-config-mismatch Disabled
storm-control Disabled
udld Disabled
unicast-flood Disabled
...
sw2#

Firepower Threat Defense (FTD) provides six interface modes which are: Routed, Switched, Inline Pair, Inline Pair with Tap, Passive, Passive (ERSPAN). When Inline Pair Mode is in use, packets can be blocked since they are processed inline When you use Inline Pair mode, the packet goes mainly through the FTD Snort engine When Tap Mode is enabled, a copy of the packet is inspected and dropped internally while the actual traffic goes through FTD unmodified