Those bunnies are just so cute! Isn't if funny that we see fat animals like that and they are adorable but fat people are considered ugly? lol! I just love your mushrooms too. Thanks for posting the link to your first post about them!

Should not be a problem. Actually is usually very good. Obviously you have invited a saprophyte (=lives off of dead material) into your garden, by adding the cotton hull waste. Whether the mushrooms you have are edible or not is another matter. In my opinion it is beneficial to have mushrooms. Very few will attack garden plants (none I know of), but at the same time they help to reduce the stress on your garden plants by connecting the mulch together with their mycelium strands. This seems to effectively widen the reach of your plants' root systems. Most mushrooms are very beneficial organisms. Generally, we have the Brits the thank for our "fungal phobia". Most other ethnicities regard fungi as something good. A large majority of mushrooms are not poisonous. Respect them, they do an extraordinary job. Just don't eat any that you are not absolutely positive of-- and be sure to always cook the ones you do know. There is some good info in "Mycelium Running: How Mushrooms can Help Save The World" by Paul Stamets. And lots of good websites on the subject, just do a google search.

Most Mediterranean herbs (rosemary, lavender, sage, thyme, etc.) prefer arid conditions. The fact that there are mushrooms growing in the soil may indicate excessive moisture. Come to think of it, it may also indicate a peaty soil mix. I have never seen mushrooms grow in a gritty or sandy mix..., no matter how wet the soil. (Most) herbs want a very well-drained soil of relatively low fertility. Where did the soil come from? It looks heavy. Is it a commercially prepared mix?

Yeah they are weird but kind of cool too. Assuming it isn't chronically wet soil they are a sign of healthy soil. Dave