Step 1: Use the repeating structure
The expression under the first root is \(\tan x+y\) itself, so \(y^2=\tan x+y\).
Step 2: Differentiate
\(2yy'=\sec^2x+y'\), so \(y'=\frac{\sec^2x}{2y-1}\).
Step 3: Find \(y\) at \(x=\frac{\pi}{4}\)
\(\tan\frac{\pi}{4}=1\), so \(y^2-y-1=0\) and \(y=\frac{1+\sqrt5}{2}\) (positive root).
Then \(2y-1=\sqrt5\) and \(\sec^2\frac{\pi}{4}=2\).
Step 4: Square
\(y'=\frac{2}{\sqrt5}\), so \((y')^2=\frac{4}{5}\).
Final Answer:
\((y')^2=\frac45\), option (C).
\[ \boxed{\text{(C) } \frac{4}{5}} \]