It will depend on the age of the manure. Horse manure can be... what is called 'hot', which means it can pretty much kill your seedlings, plant
roots, if it is too fresh.
If you have a large heap of manure and, if you were to stick your hand deep in it, it is pretty warm to the touch, then you might have issues in this regard. If it is cold inside the heap then it's probably fine, but it will be full of weed seeds.
If you have the means (a
tractor or personal labor), to create a
compost of your mulching material and the horse manure plus
water, you will eliminate the problems. Especially if you have a machine, but even by hand, you can turn a fairly large compost. Turned four times over 18 days will bring you a massive amount of compost, that will not only be the same amount of material (even with the losses due to off-gassing the biological incorporation of the water, as well as the greatly expanded biological community, will allow this to show no visible loss of volume if done right), it will have been composted hot which will kill the inevitable grass seed that is present in horse manure.
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