That's what it looks like. Sorry the photo is

I think lower stems have some component of root tissue, so roots can form on them. That's especially true with seedling stems under cotyledons, and is actually a good reason to pile up soil under cotyledons. Above them, except for tomatoes which can form them anywhere, roots are more likely to form at leaf nodes. Interesting that this might have to do with mycos. Maybe what you're seeing are hyphae that those fungi produce.

Ya its unusual. I've seen the bumps form on the stem buy never expand into developing roots. I likely think they need transplanting but it's still too early and cold up here

Hoping it can last in its lot another 4 weeks before I put it outside

The photo looks very much like roots to me. You might try planting some deeper in a larger pot, and leaving some alone to see what happens.

They are adventitious roots and are nothing to worry about. It is not an unusual phenomenon under conditions of warmth and high humudity and some species are more prone to it than others. When you plant out plant deep so those roots are covered.