Given: $\mathrm L(x) = x - 2$, $\mathrm M(y) = y - 5$ and $\mathrm N(x, y)= 3x - 4y - 10$.
To find: All the circles that are tangent to these three lines.
Outline of the method :
If we parameterised any line $\mathrm Z$ in terms of $x(t) = pt + q$ and $y(t) = rt + s$, then for a general circle $\mathrm C(x, y) = (x - \alpha)^2 + (y - \beta)^2 - \gamma^2$ we can substitute the the parameters of the line and get
$$\mathrm C(x(t), y(t)) = a t^2 + bt + c = 0,$$ where $a,b,c \in \Bbb R$ and they depend on $p$,$q$.
Now if this quadratic has $2$ roots then the circle intersects the line at $2$ points and same for $1$ and $0$ roots.
If we are given that $\mathrm Z$ is tangent then we can using completing the square and get $(t - d(p, q) ) ^2 + e(p, q) = 0$.
So our condition for the line tangent to the circle would be $e(p, q) = 0$.
Parameterising the three equations,
$\mathbf L^\prime (l) = (2,0) + l (0,1)$, $\mathbf M^\prime(m) = (0, 5) + m(-1, 0)$ and $\mathbf N^\prime(n) = (2 , -1) + n(4,3)$.
Substituting these in the general equation of a circle, $\mathrm C(x, y) = (x - h)^2 + (y - k)^2 - r^2$.
$$\left\{ \begin{align} \mathrm{C(L_x, L_y)} &= (2-h)^2 +(l-k)^2 -r^2 \\ \mathrm{C(M_x, M_y)} &= (m+h)^2 +(5-k)^2 -r^2 \\ \mathrm{C(N_x, N_y)} &= (2+4n-h)^2 +(3n-1-k)^2 -r^2 \end{align} \right.$$
As per the above method,
From first equation we get $r^2 = (2 - h) \iff r = |2 - h|$ and from second equation, $r = |5 - k|$.
Completing the square on the third equation we get,
$$\mathrm{C(N_x, N_y)} = \left(5n + \dfrac{5 - 4h - 3k}{5}\right) + 5 - 4h + 2k - r^2 + h^2 + k^2 - \left[1 - \dfrac{4h - 3k}{5}\right]^2.$$
Therefore,
$$ 2 + 2k + h^2 + k^2 = r^2 + 4h + \left[1 - \dfrac{4h - 3k}{5}\right]^2.$$
So here we got three equations:
\begin{align} 2 +2k +h^2 +k^2 &= r^2 +4h +\left[1 - \dfrac{4h-3k}{5}\right]^2 \\ r &= |5-k| \\ r &= |2-h|. \end{align}
I don't mind solving the third equation after substituting for $r$ from first in it, it is just a quadratic. What I don't understand is whether I should take $r = + (5 - k)$ or $r = - (5 - k)$ and $r = +(2 - h)$ or $r = - (2 - h)$?
Which two out of those should I take? And why?

You have by distance from a point to a line formula, $$|h-2|=|k-5|=\frac{|3h-4k-10|}{5}=r.$$ Consequently, $h=2\pm r$, and $k=5\pm r$. So we have four cases