I also noticed the changed behavior when changing to a newer IOS that the TACACS key was encrypted (using the Cisco proprietary - type 7 - encryption).
The command that provides this is the command service password-encryption. This is the command that has always encrypted line commands and things like that. It is obvious that Cisco has enlarged the list of passwords that are protected by this service.
I did test and if I remove the service password-encryption and then configure a TACACS key, then the key value shows up in clear text as it does in older versions of IOS.
I do not believe that level 5 is achievable for the TACACS key.
HTH
Rick
HTH
Rick