Repotting chilli plant - yellow fuzz on roots?

[Aweepawee]

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).

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??

Thanks!