That looks more like fungus

It's a well established tree, and rainfall is fairly consistent in this area, so I don't maintain a watering schedule. I carefully pruned earlier this spring, but am not sure if this branch was pruned this year or not. I'll remove the affected stem, and continue monitoring.

Can we see a photo of the whole plant?

Following.

Probably slime mold/dig vomit mold (a fungus as noted earlier). I don't think it will harm any healthy tissue as it attacks and breaks down dead organic material.

https://en.wikipedia.org/wiki/Slime_mold

https://www.thespruce.com/identifying-and-controlling-dog-vomit-fungus-2539510

I agree that this is a harmless slime mold rather than a problem. Slime molds are never an indication of a problem. However, you do need to learn how to prune.

I could definitely use a pruning lesson, or two, three! If anyone finds this useful, I'm posting a few recent photos for a before / after comparison.

I'm grateful for the feedback and advice offered on this thread. Ultimately, I decided to leave the branch to let it heal on its on.

I'll update again mid summer. Aloha.

It is a bit close to the house as you can see it reaching away from the house. Maybe take out the back of the shrub so it doesn't rub the house? Maybe start some new plants from cuttings as digging it up would be a Herculean task.

There are many guides online about pruning - take out dead wood first, take out crossing branches, thin weaker limbs, then start shaping. When pruning a major trunk/limb cut back to the union fairly close so there is no stub or stump left. Easier said than done though. HA! Do as I say, not as I do...

The new growth looks good!

Thanks for the tips! Starting some new plants from a cutting sounds like a great experiment, and learning experience! I'm mostly satisfied with my pruning efforts, mainly because it did not die : ) The main objective is to keep it from getting too friendly with the cedar siding. So shaping will definitely be on my to-learn list.