No it's not dog puke. It's ... it's ... fungal barf? I just told my co-worker to move!

So, a very dapper man we work with who has a beautiful home with exquisite landscaping says that he has 'fungal barf.' It comes back every year and it looks like this (which popped up overnight!) and it also looks like this:

When he asked me I told him the name of a realtor and told him to move. It just seemed easier than getting the answer. But apparently he likes his home and wants to know....

WHAT IS THAT?

Do you know, or God forbid, have it at your place? Seriously grossed out....