I use shredded cypress, it breaks down fairly fast and I have never had any problems. It will float with very hard and excessive rains but I just rake it up and put it back on the beds. The large amount of rains we have had will create problems you will not normally have, you might just wait for dry weather before you make any changes

The fungus will go away, I just leave it alone. I have, on occasion, just mulched with "back to earth" (cotton burr compost). Currently I have a lot of the wood chips too...I am finding them all over :(

I also like to use a living mulch. I've grown golden oregano the last 3-4 years. It works great and is very pretty!

I don't recall ever replacing mulch. Sometimes I till it in, or just add more on top. I do get fungus and rot of the mulch but it has never been a problem. I use about any kind of "Free" chemical free organic matter I can get for mulch.

I put in grass clippings, mulch, and leaves as my rotation. Grass in the spring, mulch before it gets too hot, and leaves in the fall.

I don't replace mulch either, and I use a combination of hay, straw, chopped autumn leaves added in fall and winter, and grass clippings added during the months we're mowing. In the sort of perpetually wet weather we are having right now, fungi have the potential to grow everywhere and on anything. Changing out old mulch for new mulch won't change that.

Fungi can be beneficial as well as harmful, so keep that in mind. In a wet year, the plants likely will get fungi even if you had rocks or concrete chunks for mulch because fungal spores can be airborne, and even can be found in the oxygen portion of H2O. So, removing mulch doesn't really end the fungal threat. Even time it rains, your raindrops may be carrying fungal spores, and every time the wind blows, windblown fungal spores can travel to your garden.

You'll never have a fungi-free garden, and many fungi are beneficial, and I just don't worry about them when they are on the mulch. When it dries up, they fade away. When we have rain, they come back. It is just part of the ecosystem in which we live, work and garden.