I have a jalepeno planted in a pot and seemingly over night this strange looking plant shot up near the edge of the pot. I didn't notice yesterday but today here it is.
It's a mushroom (or so it seems to my eye) that grew up out of those well-watered wood chips your pot looks to be mulched with. It's gone past the "toadstool" phase already (if it ever had one) and is into the fringey-decay portion of its lifecycle.