Traction control question
 

I recently picked up my first AWD Volvo ('98 XC), and it's got the traction control that I've heard is a disaster but I have no experience with.

Currently I've got the driveshaft out for a rebuild, so It's just FWD right now. Recently I was on a muddy road and the front wheels started spinning. The traction control is not turned off, and there is no light on the dash indicating a malfunction in either the ABS or Tracs system

So what am I missing? Isn't the function of traction control to prevent wheel spin? Is it not doing its job because the driveshaft is out?

Thanks