This article exposes that although some sensor-based nonlinear fault-tolerant control frameworks including incremental nonlinear dynamic inversion control can passively resist a wide range of actuator faults and structural damage without requiring an accurate model of the dynamic system, their stability heavily relies on a sufficient condition, which is unfortunately violated if the control direction is unknown. Consequently, it is proved in this article that no matter, which perturbation compensation technique (adaptive, disturbance observer, sliding-mode) is implemented, none of the existing nonlinear incremental control methods can guarantee closed-loop stability. Therefore, this article proposes a Nussbaum function-based adaptive incremental control framework for nonlinear dynamic systems with partially known (control direction is unknown) or even completely unknown control effectiveness. Its effectiveness is proved in the Lyapunov sense and is also verified via numerical simulations of an aircraft attitude tracking problem in the presence of sensing errors, parametric model uncertainties, structural damage, actuator faults, as well as inversed and unknown control effectiveness.