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That white fungus (really bacteria) is trying its best to kill off what is actually killing your plants. Likely a bacterial infection from soil remaining wet for too long without a period to dry out.

Unfortunately, I cannot see the plant damage from the photo. I will be unable to tell you, exactly, what is killing your plants. I can suggest way to get your soil back to a proper condition, though. If that fungus, or any other is growing happily, it means that the environment is better suited for microbial growth than it is plant growth.

First, check your pH, and raise it some. It is likely on the acidic side from the infection and its metabolites. DOLOMITIC LIME will take care of this.

Make sure that your soil dries out to AT LEAST 2 or 3 inches between watering.

Make sure to test your soil for pH swings and nutrient deficiencies.

Here are some articles that will help:

https://www.gardeningknowhow.com/garden-how-to/soil-fertilizers/testing-soil.htm

https://www.gardeningknowhow.com/garden-how-to/soil-fertilizers/soil-ph-plants.htm

https://www.gardeningknowhow.com/garden-how-to/info/applying-bactericide-to-plants.htm

https://www.gardeningknowhow.com/composting/manures/fungus-growing-on-manure.htm

Unfortunately, your photo did not come through. It sounds a bit like a slime mold, though. This article will help:

https://www.gardeningknowhow.com/ornamental/fungus-lichen/what-is-slime-mold-slime.htm

That is one of many hard-to-identify slime molds.

Though the mold is not harmful, and is trying its best to kill of bacteria in the soil, this indicates that the soil doesn't get a chance to dry out at all. This makes the soil highly unsuitable for plant life, and perfect for bacteria and fungi.

The best treatment will be to treat with fungicides in between letting the soil dry out very, very thoroughly.

Solarization may be necessary, as well.

Here are some articles that will help:

https://www.gardeningknowhow.com/ornamental/fungus-lichen/what-is-slime-mold-slime.htm

https://www.gardeningknowhow.com/garden-how-to/info/using-fungicides-in-garden.htm

https://www.gardeningknowhow.com/special/organic/biofungicide-information.htm

https://www.gardeningknowhow.com/garden-how-to/info/homemade-fungicide.htm

https://www.gardeningknowhow.com/garden-how-to/projects/how-to-solarize-garden-beds-to-eliminate-garden-pests-in-the-soil.htm

The closest thing I can find to that photo is slime mold, which is a fungus. I would not eat anything it has come in contact with. There is a white mold, too, but it's fluffier. You could contact your local extension agent and see if he has seen anything like this before.

https://www.gardeningknowhow.com/ornamental/fungus-lichen/what-is-slime-mold-slime.htm

https://www.gardeningknowhow.com/extension-search

https://www.gardeningknowhow.com/edible/herbs/lemongrass/brown-leaves-on-lemongrass.htm

Unfortunately, your photo did not come through. It sounds like a fungal or bacterial infection. This is most often caused by overwatering.

Here are some articles that will help:

https://www.gardeningknowhow.com/garden-how-to/info/using-fungicides-in-garden.htm

https://www.gardeningknowhow.com/special/organic/biofungicide-information.htm

https://www.gardeningknowhow.com/garden-how-to/info/applying-bactericide-to-plants.htm

That is one of many bird's nest fungi. Those "eggs" you see are the spore bearing surface.

These guys are very beneficial to soil, as they break down organic material into nutrients very fast.

If any fungi were to be considered a garden friend... these would be it. Please do not take steps to remove them, as they are difficult to rid, and doing so will, effectively, will cause harm to your plant.

I have found one of our articles pertaining to this little garden friend. This will give you a good read:

https://www.gardeningknowhow.com/ornamental/fungus-lichen/birds-nest-fungus.htm