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Repotting chilli plant - yellow fuzz on roots?

Hi there !

So I decided to re-pot my indoor chilli plant, and while trying to get as much of the old soil out of the root ball as possible, I noticed some yellow fuzz at the base of the plant amongst the roots?? The yellow fuzz looks a bit like cotton candy, feels coarse to the touch, but is crumbly (photos attached).
IMG_5509 (1).JPG
No luck with research online in order to identify what the yellow fuzz is exactly, can someone please tell me if this is some sort of mould/fungus growing on the plant roots? If it is, should I just chuck away the plant? :(

Otherwise if not fungus, what do you think it is (is it just a new set of young roots...) and is this okay for the plant??


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