I get mushrooms & fungal growth when there is a lot of rain or high humidity....
I lost about a dozen daylilies to crown rot this spring, but the weather this spring was really really weird - too hot, then freezing then hot again. Since then, I have had a couple more come down with it. I dug them up, washed the roots in a dilute bleach solution, allowed them to dry for a bit, then replanted them in pots. - all are doing well, and I will put them back in the garden when the weather moderates.
And yeah, the crown rot smelled rotten. Regular molds & fungus, of which many are normal in the soil, don't smell rotten. Some of my daylily gardens have wood chop mulch, and as it decomposes it will have "white threads" through it. Again, it doesn't smell "rotten" ~Jan
