"Following drying at 45 degrees, the material is not quite living and not quite dead, but instead in a "low-metabolic, dormant-like state", Li told Dezeen, meaning it is not actively growing."

Don't think spores will be an issue since it's not the mycelium's sex organ mushroom that you're thinking of

It depends on the species. Some fungi like molds do directly sporulate from the mycelium.