It is one of the biochemical identifications for Xanthomonas sp., where the pathogen cannot grow in 0.02% TTC and its growth is completely inhibited at 0.1% TTC.
As I know, most of Xanthomonads can be tolerant to 0.01% TTC only. Some old reports about xanthomonads growth on higher concentrations were about misidentified species, later placed to Pantoea.
TTC is a redox indicator commonly used in biochemical experiments especially indicate cellular respiration. TTC is enzymatically reduced to red TPF (1,3,5-triphenylformazan) in living tissues due to the activity of various dehydrogenases. I guess it is a good competitor for usual bacterial substrates and reduce available enzymes activity.