Dude, you got it back wards. One press turns off VSC when 4WD is engaged. 3 Second press kills it all.
Doesn't make sense to have VSC when you have 4WD on. Now on my 3rd gen with the multimode 4WD, the VSC is on in AWD, but when you hit the CDL button, it locks the CDL and disengages VSC. VSC only monitors vehicle dynamics while TRAC monitors wheel spin and work together. VSC doesn't engage if the vehicle is not sliding. TRAC is at work when there's different wheel speeds. Trust me, I've used and abused TRAC, A-TRAC and VSC since they came out on the LC100s back in 2000.
OP, what you heard is normal and nothing to worry about. When going over ruts and bumps, one of your tire had less resistance and spun a little faster than the others and TRAC kept it from stepping out of line. In the sand, you always want all 4 wheels spinning so if you have your multimode set for sand, of course it's adjusting correctly also.