That is normal when wood being soaked in water. After sometimes, white "fungus" will be gone. If the tank is cycled, you can put some algae eater like Otocinclus or Amano shrimps in, they will help to clean it up. You can also use the brush to remove it manually, try to remove as much as possible but try not spread the algae around.
At the same time, you can buy some fast growing plants for the tank. It will help to take more excessive nutrients and less chance for algae to bloom.
All the best!
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