Browning of inner needles on lower branches—while tips stay green—is normal seasonal needle drop on Cupressus macrocarpa. As the canopy densifies, shaded interior needles senesce and drop.
Diseases like cypress canker kill entire branches, not just inner needles. If whole limbs turn brown and die, investigate further.
Your 20–25 foot trees after one year show vigorous growth. The described pattern is textbook natural needle shed, not a problem requiring treatment.
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