A 7-year-old aloe with mushrooms at the base, brown leaf tips, and pale new growth is not suffering from a pathogenic fungus. The mushrooms are saprophytic—breaking down organic matter in overly moist soil. Brown tips and pale color confirm overwatering.
The healthy pup (offset) you transplanted is thriving because it's in fresh, well-drained soil. Use it as a backup if the mother plant declines.
With corrected culture, the aloe will regain its compact, deep green form.
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