Fluffy yellow/orange/tan patches appearing on wood mulch in warm, wet weather (June onward) that turn brown and powdery when dry are slime molds (myxomycetes)—primitive organisms that feed on bacteria and decomposing organic matter. Common on fresh hardwood mulch.
No. Slime molds do not infect plants, damage roots, or produce toxins. They are purely cosmetic. Only risk: if a large mass smothers low annuals, it can shade them out temporarily.
Slime molds can "move" (slowly) and solve mazes in lab studies. They're more closely related to amoebas than fungi.
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