HelpfulGardener.com

So this morning I noticed that one out of my 8 or so red baby bells on 2 baby bells in the same 5 gallon bucket had a "rotten" looking spot, figure it might be blossom end rot. Just now I noticed two spots of what looks like while Mycelium aka mold.

And I went ahead nad "ripped" those pieces of soil out just now, and noticed a few SUPER TINY black bugs, almost microscopic from under where the mold was....

I inspect my plants daily, only have two 5 gallon buckets, one with the 2 red baby bells I'm talking about, one with a Jalapeno plant, and I also have a 45 gallon tote with 2 water melon plants, all grown on a 3rd floor balcony.

Any idea what this is? Any course of action? If I can fix it, I'm glad I caught it early.....

Your potting mix looks very woody, like it has a lot of wood chips in it. Mushrooms and those white fungal strands love to grow on wood. Nothing to worry about, just part of the process of breaking the wood down.

You didn't show a picture of your pepper.

Yes blossom end rot is a problem for peppers. I use pellet lime on mine. 1 dose of pellet lime in not enough the plants can use a little more about every 2 weeks.