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Nagao module theorem states that if $e\in Z(kG)$ is a central idempotent, $eM=M$, and $C_G(Q)\le K\le N_G(Q)$, then ${\mathrm{Br}}_Q(e)$ is central in $kK$ andEvery indecomposable summand of the second term is relatively projective for some subgroup of $K$ not containing $Q$. In particular, if $Q\le K$, the error term has no summand with module vertex containing $Q$. This is the Nagao version of the second main theorem; it identifies the modular block of a module vertex-$Q$ Green correspondent.

Let $e_B$ be the identity of $B$, $N=N_G(D)$, and $b$ its Brauer correspondent of a block in $kN$. Because $D◃N$, the ideal $J(kD)kN$ is nilpotent: normality allows moving $kN$ past $J(kD)$ and the augmentation ideal of the p-group is nilpotent. Hence $b$ has nonzero image in $k(N/D)$. Choose an indecomposable summand $U$ of $bk[N/D]$. It is projective over $k(N/D)$ and belongs to modular block $b$ after inflation.

Since $k[N/D]={\mathrm{Ind}}_D^{N}k$ is a permutation module, its summand $U$ has trivial module source and module vertex contained in $D$. As $D$ acts trivially, all its proper-subgroup traces vanish and its Brauer quotient of a module is $U(D)=U\ne 0$. The module vertex must also contain $D$, so it is exactly $D$. This is inflated quotient projectives have trivial source.

Let $M$ be the Green correspondent of $U$ in $G$, using the theorem proved in the next solution. It has module vertex $D$ and the same trivial module source. For a normal p-subgroup, each central block idempotent of $kN$ equals its Brauer image: the two central idempotents agree modulo the nilpotent ideal $J(kD)kN$, because nonfixed conjugation-orbit sums map to zero in $k(N/D)$; central idempotents congruent modulo a nilpotent ideal coincide. The first main theorem therefore gives ${\mathrm{Br}}_D(e_B)={\mathrm{Br}}_D(b)=b$.

Let $e_C$ be the block identity acting on $M$. Nagao's theorem forces ${\mathrm{Br}}_D(e_C)U=U$, since $U$ has module vertex $D$. But $bU=U$, and for $C\ne B$ orthogonality would give ${\mathrm{Br}}_D(e_C)b={\mathrm{Br}}_D(e_C{e}_B)=0$. Therefore $M$ belongs to $B$, has module vertex $D$ and has trivial module source. For $D=1$, this supplies an indecomposable projective in the defect-zero modular block.

For the representation-type deduction, modules in a block are projective relative to its defect group: the block trace identity acts as a relative trace equal to the module identity, so D. Higman criterion gives split induction from $D$. If $D$ is cyclic of order $d$, then $kD\cong k[t]/(t^d)$, whose indecomposable modules are the nilpotent Jordan chains $k[t]/(t^j)$, $1\le j\le d$. Each indecomposable in $B$ is a summand of the module induction of its module restriction to $D$, and hence occurs among the summands of these finitely many fixed induced modules. Their finite Krull-Schmidt decompositions give finite representation type.

Conversely, the regular defect-group bimodule inside a block givesIndeed this module restriction is a permutation summand. Its Brauer quotient at $\Delta D$ is nonzero, because on the fixed group-basis elements $C_G(D)$ the block projection becomes multiplication by ${\mathrm{Br}}_D(e_B)\ne 0$. Every transitive $D\times D$ orbit in $G$ has stabilizer of order at most $|D|$. A summand with a nonzero quotient at $\Delta D$ must therefore have stabilizer exactly $\Delta D$ up to conjugacy, and is the regular $kD$ bimodule. Tensoring this split inclusion on the right with an arbitrary $kD$-module $V$ yieldsIf $B$ has only finitely many indecomposable modules, their restrictions contain only finitely many indecomposable summands. The displayed inclusion puts every indecomposable $V$ on that finite list, so $kD$ has finite representation type too.

A noncyclic finite p-group has a quotient $C_p\times C_p$, by the Burnside basis theorem for its Frattini quotient. Here is an explicit infinite family over any field, including a finite field. For $s\ge 1$, take basis $v_0,\dots ,v_s,w_1,\dots ,w_s$ and operators $x=g-1$, $y=h-1$ defined byand $x{w}_i=y{w}_i=0$. All products of $x,y$ vanish, so $1+x,1+y$ satisfy the group relations in characteristic $p$. The radical is $W=⟨w_1,\dots ,w_s⟩$. An endomorphism preserves $W$, and commuting with the two shift maps forces its induced maps on $V/W$ and $W$ to be the same scalar. To see this, write the shift matrices as $X=(0I_s)$ and $Y=(I_{s}0)$: the equations $CX=XA$, $CY=YA$ force the off-diagonal entries of $A,C$ to vanish and all diagonal entries to agree, by comparing successive rows, including the zero first column of $X$ and zero last column of $Y$. The remaining linear map sends the top into $W$ and has square zero. Thus the endomorphism ring is a scalar algebra with square-zero radical, hence local; the module is indecomposable. Inflation to $D$ preserves that ring. Its dimensions $2s+1$ are unbounded, contradicting finite representation type. Therefore $B$ has finite representation type if and only if $D$ is cyclic, including trivial defect.