How does the Audi A8 handle traction control?

I've been talking to some friends about the Audi A8 and we can't seem to agree on how the traction control is implemented. Can someone clarify this for us?

The Audi A8 uses a combination of electronic stability control (ESC) and all-wheel drive (AWD) to ensure optimal traction control. The ESC system uses sensors to detect wheel slip and adjusts engine power and brake pressure accordingly, while the AWD system distributes power to each wheel as needed for better grip.

Traction control in the Audi A8 is particularly effective due to the Audi drive select system. It allows drivers to select from different driving modes, including one specifically for low-traction situations. This mode optimizes the ESC and AWD systems for better handling and control on slippery or uneven surfaces.