When you held the VDC button down for 10 seconds, does the VDC off light stay on or does it turn off? If it comes on and then turns back off after 10 seconds, you haven't disabled traction control or any other traction "nanny". You've just deactivated the VDC button. It's a "valet mode" so...
Method 1 does not disable traction control or stability control. It simply deactivates the VDC button so that a valet can't go joyriding in the car. Method 2 does work to disable all "nannies". However, you're not actually pressing on the brake light switch. You're pressing on a different switch...