he swinging the toy with alinear velocity of 2m/s will the toy move in acircle?

It will only move in a VERTICAL circle is there is tension in the string at all times, especially at the top of the circle, where the centripetal force M V^2/R must exceed the weight, M g.

Require that V^2/R > g for this to happen

g = 9.8 m/s^2 V^2/R = 5 m/s^2