Controlling Damping Off Fungus on Seedlings with Sphagnum Moss

Despite sterile soil and new peat pots, I have delicate weblike fungus among seedlings. Using Q-tip with rubbing alcohol. Source? Harmful? Suggestions?

Damping Off Management

That's damping off fungus. Apply a thin layer of milled sphagnum moss (nurseries carry it) on top of potting soil. For surface-sown seeds (light-requiring), press seeds INTO the moss instead of soil. The moss suppresses the fungus. Alcohol Q-tips help but moss is preventive and easier.