I have tried both methods with HC as my foreground plant in my tiny 2ft tank. I did the DSM because I wanted to have mini pelia and fissiden on my driftwood without having the need to tie or glue them, the plan was two weeks but on week two, I decided to add in HC and gave it another two weeks to ensure the mosses adhered to the wood before flooding. I did not experience any melting after flooding, my drop checker was light yellow during light period and the tank was cycled after two weeks (surprisingly). However, I killed most of my mini pelia after I did a h202 treatment to fight some algae (wasted my effort)... If your worries is the soaked wood scape, mine was totally dry when I started DSM and it was totally soaked by the time I'm ready to flood it. No issues of them floating up. Best part was no HC floating up haha.
The only problem I had during DSM was having too much water from my daily spraying, likely because I didn't manage to control the amount of water to spray as I was worried the mosses will dry up lol. I had to use a syringe to draw out water from substrate and because I used sands for the front portion of my tank, I had to dig a hole and drain the water slowly on a daily basis. Might be a good idea to leave some open space to drain water if you do not have good control on the amount of water to spray like me.
Honestly, both methods worked for me. DSM allows me to make changes to the scape like building the back higher, or removing some ADA powder to create a sandy path during the one month period easily as there's no water inside the tank. You will need lots more patience if you decide to go with DSM as compared to the normal way. If you take into consideration the fishless cycle period, it may both end up to be around 4-6 weeks.
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