Sclavian

are you using any mods? or have soil instability turned on in the settings? Edit:Nvm saw the modded tag lol, what mods do you have on exactly?

with hytale's unfortunate cancelling some of the devs from that project joined vintage story's team and there's plans of a separate gamemode more symilar to an rpg so somwhere in the future™ theyll add something like that officially to the basegame

bit of a late join from me but the zones the mushrooms respawn are fixed and set as XYZ coordinates and not certain blocks (you can toggle seeing them with Shift+M i believe) they're called Mycelium in commands and you can terraform in them and still get spawns but they're only 2-3 blocks tall so if you place dirt lower or higher than that they will have no eligible blocks to spawn

They should be between the front legs and the saddle, swords on the left bows on the right