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I don't have experience but reading on their website which says the following:

Please only apply for either a vacation scheme or a training contract at any one time. You may apply for a training contract after making an unsuccessful application for a vacation scheme but please do spend time addressing any feedback you receive. You can only take the online assessment once each academic year. You are able to reapply for a vacancy in the same academic year, but you will not be able to retake the assessment in the same window.

I think it's a little difficult to decipher from this but what I understand is that they are not discouraging you from a TC app after an unsuccessful VS app, but  they want you to spend time addressing any feedback.  Since you cannot retake the assessment in the same window, you cannot feasibly apply for the TC in the same academic year.  I'm pretty sure that's what it means.