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The Nagao version of Brauer second main theorem is the following module statement. Let $e$ be a central idempotent of $kG$, let $P$ be a p-subgroup, and suppose $C_G(P)\le K\le N_G(P)$. If $eM=M$, put $b={\mathrm{Br}}_P(e)$, which is central in $kK$. Thenand every indecomposable summand of the second term has vertex not containing $P$. More precisely it is relatively projective for some $p$-subgroup of $K$ not containing $P$. In particular the vertex-$P$ Green correspondent lies in the block selected by the Brauer morphism. This is the precise restriction statement needed below.

Let $B$ have defect group of a block $D$, and let $b$ be its Brauer correspondent in $N=N_G(D)$. We first build a trivial-source module in $b$. The exact functoris nonzero on the trivial $kD$-module. Otherwise it would vanish on every $kD$-module, since a group algebra of a p-group in characteristic p is local and all composition factors are trivial; but $F(kD)=b\ne 0$. Choose an indecomposable summand $V$ of $F(k)$. Since $D◃N$, its restriction to $D$ is a nonzero direct sum of trivial modules. It is $D$-projective. It cannot have a proper vertex $Q<D$: restriction would make a trivial $D$-module relatively $Q$-projective, whereas on its endomorphisms the trace from $Q$ is multiplication by $[D:Q]=0$ in $k$, contrary to the D. Higman criterion. Hence $V$ has vertex $D$ and trivial source.

Take its Green correspondent $M$ in $G$. To verify that $M$ is in the intended block rather than just some block with a large defect, let $e^{\prime }$ be the global block idempotent acting on $M$. Nagao's theorem puts the vertex-$D$ summand $V$ of $M{\downarrow }_N$ in ${\mathrm{Br}}_D(e^{\prime })$. Thus $e_b{\mathrm{Br}}_D(e^{\prime })\ne 0$. The first main theorem already gives $e_b={\mathrm{Br}}_D(e_B)$; orthogonality of Brauer images of different global block idempotents forces $e^{\prime }=e_B$. Green correspondence preserves sources, so $B$ contains an indecomposable module with vertex $D$ and trivial source. The same argument proves the same-block compatibility of Green correspondence for every vertex-$D$ module used below.

For finite representation type, first suppose $D$ is cyclic of order $q$. Write $D=⟨g⟩$ and $t=g-1$. Then $kD\cong k[t]/(t^q)$, and the indecomposable modules for a cyclic p-group are $k[t]/(t^j)$, $1\le j\le q$, by Jordan normal form. Every indecomposable module in $B$ is $D$-projective by Question 1, so is a summand of an induction of one of these finitely many indecomposable $kD$-modules. Each induction has finitely many indecomposable summands. Therefore $B$ has finite representation type.

For the converse it is important to obtain infinitely many modules of full vertex $D$, and not silently assume that the field is infinite. If $D$ is noncyclic, its quotient by the Frattini subgroup is elementary abelian of rank at least two, so $D$ maps onto $C_p\times C_p$. A rank-one Frattini quotient would make any lift of its generator generate $D$, since every proper subgroup is contained in a maximal subgroup. Here is an explicit family of full-vertex modules for a noncyclic p-group valid over every field $k$. Set $x=g-1$, $y=h-1$ for the two quotient generators. Onput $x{v}_0=0$, $x{v}_i=w_i$ for $1\le i\le r$, $y{v}_i=w_{i+1}$ for $0\le i<r$, $y{v}_r=0$, and $x{w}_i=y{w}_i=0$. All products of $x,y$ are zero, so the relations $x^p=y^p=0$ and $xy=yx$ hold, including when $p=2$.

These modules are indecomposable. Their common kernel and radical are $W=⟨w_i⟩$. An endomorphism preserves $W$; let $A$ be its induced matrix on $L_r/W$ and $C$ its matrix on $W$. The equations $CX=XA$, $CY=YA$ for the two displayed shift maps force $A$ and $C$ to be the same scalar: the first and last columns give the boundary zeroes, and the recurrence $a_{j,i+1}=a_{j-1,i}$ forces all off-diagonal entries to vanish and all diagonal entries to agree. The remaining endomorphisms map the top into $W$ and vanish on $W$, so form a square-zero ideal. Thus the endomorphism ring is local. Inflate $L_r$ to $D$ and choose the infinitely many $r$ for which $p\nmid 2r+1$. Such an $L_r$ has vertex $D$: if $1={\mathrm{Tr}}_Q^D(\alpha )$ for a proper $Q<D$, taking ordinary matrix traces would givea contradiction. Their distinct dimensions ensure distinct isomorphism classes.

Each $F(L_r)=e_b{\mathrm{Ind}}_D^N{L}_r$ is nonzero, by exactness and the already proved $F(k)\ne 0$. Its restriction to $D$ is a summand of a sum of conjugates of $L_r$, by normality of $D$ and Mackey decomposition. Consequently every indecomposable summand chosen from $F(L_r)$ has vertex $D$, and has a source conjugate to $L_r$. If $b$ contained only finitely many indecomposables, their restrictions to $D$ would contain only finitely many possible sources, contradicting this family. Green correspondence and Nagao's theorem then transfer infinitely many vertex-$D$ indecomposables in $b$ to distinct indecomposables in $B$. We have proved

Finally, for $C_p=⟨g⟩$, the algebra $k{C}_p=k[t]/(t^p)$ has precisely the indecomposablesOn $M_j$, $g$ acts as a single size-$j$ Jordan block with eigenvalue $1$. Its submodules are exactly its ideals, hence the powers of $t$: an ideal has a generator of least degree, and multiplying that generator by a unit makes it a power of $t$. Therefore its unique composition series of a module iswith $j$ trivial one-dimensional composition factors. This is uniqueness of the actual chain, stronger than uniqueness of the multiset of factors. The algebra is local, so its sole principal indecomposable module is its regular module $M_p=k{C}_p$, of dimension and composition length $p$.