Both are correct and depends on the problem under investigation. To have a better grasp of this aspect use tensor notation and learn about the derivation of Lame's parameters.
I agree with the response above, the correct definition of the deviatoric part of the stress tensor is 2*mu*D0, being the latter term the simmetric part of the velocity gradients having zero trace.
For incompressible flow, Div(2*mu*D0) = mu * Lap v