Most of the time damping off occurs when starting seedlings inside , so I have not tried it outside. You can water the seedlings or just spray them with the tea it seems to work both ways.
Damping off is a disease in seedlings , caused by a fungus that causes wilting and rotting and the seedling dies.
The tea only works as a preventive, if the seedling is wilted it is too late for that one , but it seems to spread and the others can be saved.
It spreads worse in wet soil so spraying is suggested if you have a problem.
Steph, for bottom watering I would make the tea and water in the tray with tea. Just placing a tea bag in cold water will not make tea.