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Fungi-filled mulch

In September our landscapers put in black mulch with new plants around the north-facing side of our house. Previously we had some other plants that they removed, with very old mulch and some areas of just hard looking soil that drained poorly in certain areas. Many areas get little if any sun during the day, and now the mulch is compacted with white fungus almost throughout. The landscapers are going to remove the mulch and I’m thinking maybe just a loamy soil with a little pine bark mulch (up to one inch) to enhance good drainage, though they originally just wanted to replace it with identical mulch! Our southern magnolia and cherry laurel have brown tips and the cherry laurel has shot-hole disease, likely from this. I’ve attached some photos showing what I think is the plants being suffocated by fungus. There are mosquitos and it smells moldy when it is dug up, and I am disgusted. What type of soil mulch combo do you advise? Thanks in advance.






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