We have been growing garlic for 4 years now and never had this happen. Should we put it back in the ground to grow the little bulbs on the stalk further? What makes this happen?
This is just something rare that can happen in place of flowering as an alternate reproduction method. You can plant these, but they aren't as reliable as normal propagation. Eating them or using them for culinary purpose is an option.
Here is a collection of articles that will help you with garlic:
I’m growing garlic and I use large grow bags. I have 3 of them with the same dirt but one of them has these little mushrooms popping up. I pull them out but wondering if it’s doing damage or poisoning the garlic🤷♀️ Please advise. Thank you for your time and expertise😊
The presence of mushrooms could indicate too much moisture in the bag. Fungi generally are helpful in garden soil. Removing them is fine, they don't move in soil (except by growing) and won't harm the garlic. Just be sure you get all the pieces out and they are not consumed.
https://www.gardeningknowhow.com/ornamental/fungus-lichen/what-are-fungi.htm
https://www.gardeningknowhow.com/ornamental/fungus-lichen/environmental-benefits-of-fungi.htm