That looks like there are three modes, the last being stick and throttle - or "manual" in my estimation.
Qourtney,
The F-35 (like the F-16) is fly by wire all the time. There is no back up mechanical flight control system. If the computers go away or the wiring goes away, flight control goes away. And in the case of the F-35 "flight control" includes the engine. The engine is integrated into the F-35's flight control system.
However, there are different FBW "normal" modes and different "degraded" modes. The "manual" degraded mode does NOT mean it reverts to some kind of mechanical sytem of control. "Manual" means that the feed-back motors in the stick and throttle are gone so the pilot flies wihout any tactile feedback. Only the pilot's eyes and "seat of the pants" provide feedback as to what the flight control computers are doing. Basically in "manual" mode the F-35 flies somewhat like an F-16. No stick feedback about what the computers are doing with the control surfaces. But unlike the F-16, the F-35 flight control computers also completely control the engine. When in "manual" mode the pilot gets no throttle feedback what the flight control conputers are doing with the engine. So the "manual" mode of the F-35 is sort of like all FBW Airbus aircraft in "normal" mode with the autothrottle engaged. It is completely computer controlled with no stick and no throttle feedback. Which means that if there is a massive computer failure in the F-35 , there is only one option: the ejection seat.