When you add better soil to the planting hole, the tree roots react by not rooting into the native soil. Why bother? The soil is so nice right here in this tiny hole. All you have done is put them into a bigger in-ground pot. Tree roots establish much more quickly when not babied with nice soil in their planting hole. Read this:
https://ucanr.edu/sites/soils/...
Roots at the top of the root ball where the roots attach to the tree trunk are called flare roots. When you cover the flares, the roots will rot from lack of oxygen. Looking back at your photo, you will have to remove some soil from the top of the root ball to find the flare.
Tiny roots growing from the trunk are called adventitious roots, they are not the flare roots. You can cut those off or leave them as once above soil level, they will die. Those roots grew because the trunk was planted too deep and will eventually kill the tree by strangling it. The flare roots will be hefty, coming directly off the bottom of the trunk. You need only one - don't dig it up, but make sure that is the soil line.
If you want to put a layer of mulch on top of the planting area, keep it outside the root flare area.
https://csfs.colostate.edu/wp-...