I'm taking up a post that was closed for lack of context because I'm very interested in it :

Let $(a,b)$ be the center of this circle. It seems intuitive that $b=a$, but I have not been able to prove it formally, although I know that two reciprocal functions are symmetric with respect to the first bisector $y=x$.
Then let $(X,X^2)$ the point of tangency with $y=x^2$. I think we're going to use the formula for the distance from $(a,a)$ to the line $y-X^2=2X(x-X)$.
We have obviously the relation $r=2-a$. The normal to $(X,X^2) $ passes through $(a,a)$
I'm not sure if my notations are the best to elegantly solve the exercise. I hope you will share my enthusiasm for this lovely exercise that I have just discovered thanks to MSE.





From symmetry, it can be assumed at first that the center of the tangent circle is on the line $y = x$.
So, let the center of the circle be at $(a,a)$, and let the tangency point with the parabola $y = x^2$ be $ (b , b^2)$, then the radius of the circle is
$ r = | 2 - a | $
The vector $(a - b , a - b^2)$ is along the normal vector to the parabola, which given by its gradient vector, namely $(2 x, -1) $. Therefore,
$ (a - b , a - b^2) = K (2 b , -1) $
So that
$ (-1) ( a - b) - 2 b (a - b^2) = 0 $
And finally, the radius is equal to the distance between the the two points $(a, a)$ and $(b , b^2) $, hence
$ (a - 2)^2 = (a - b)^2 + (b^2 - a)^2$
The solutions of these equations are
$ (a, b) = (1.655444, 1.332841) $ and $(3.783181, 2.050749) $ and $(-5.21545, -0.44123) $
The corresponding radii are $0.344556$ , $ 1.783181$, and $7.21545$ respectively. The two circles corresponding to the first two of these solutions are shown below.
Now, if we want all the possible solutions of circles tangent to the two parabolas and the vertical line $x = 2$, then we'll take the center of the circle to be
$ C = (a, b) $
And the tangency point with $ y = x^2 $ to be
$ r_1 = (c, c^2) $
And the tangency point with $ x = y^2 $ to be
$ r_2 = (d^2, d ) $
For convenience define
$ e = c^2 $ and $ f = d^2 $
We now want the vector $(C - r_1)$ to be along the normal vector to $ y = x^2 $ at $r_1$, i.e.
$ C - r_1 = K_1 ( 2 c, - 1) $
And similarly, we want $ (C - r_2) $ to be along the normal vector to $x = y^2 $ at $r_2$, i.e.
$ C - r_2 = K_2 ( 1, - 2 d ) $
Moreover, we have the radius of the circle equal to $| a - 2 |$ , so we want
$ | a - 2 |^2 = \| C - r_1 \|^2 $
and
$ | a - 2 |^2 = \| C - r_2 \|^2 $
In terms of our $6$ unknowns $a,b,c,d,e,f$, we have the following $6$ equations relating them
$ e = c^2 $
$ f = d^2 $
$ - (a - c) - 2 c (b - e) = 0 $
$ - 2 d ( a - f) - (a - d) = 0 $
$ (a - 2 )^2 = (a - c)^2 + (b - e)^2 $
$ (a - 2)^2 = (a - f)^2 + (b - d)^2 $
This is a quadratic system of $6$ equations in $6$ unknowns. It can be solved via iterative methods such the Newton-Raphson multivariate method. I used this method with equally spaced initial guess for $a$ and $ b $ , from which I computed the initial guess for $c$ and $d$ and from that, the initial guess for $e$ and $f$ follows directly. So changing $(a,b)$ over a grid centered at the origin, with step size equal to $0.5$ in each direction, I obtained $8$ solutions, out of which only $5$ of them have their $d \gt 0$. These are the ones retained because we want tangency with $y = \sqrt{x} \gt 0 $. These $5$ circles have their center $(a,b)$ and radius $r$ as follows:
$ \begin{array}{|c|c|c|} \hline \\ a && b && r \\ \hline \\ 1.422724 && 0.562507 && 0.577276\\ -4.158013 && 4.800189&& 6.158013\\ 0.242594 && 2.58606 && 1.757406\\ 3.783181 && 3.783181 && 1.783181 \\ 1.655444&& 1.655444&&0.344556 \\ \hline \end{array} $
These $5$ circle are shown in the figure below.