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I don’t know of any edible lookalikes for this ‘shroom, what looks like the Hypholoma fasciculare (a.k.a. the Common Sulfur Tuft). The Hypholoma capnoides, or Conifer Tuft, is questionably edible, but sources say to steer clear of it. Besides, people report this mushroom is extremely bitter—so you probably wouldn’t like it anyway.
They commonly grow from wood OR soil, depending on the species. Fasciculare is usually found on dead or decaying conifer stumps. Sulfur Tufts are also known as the Sulphur Tuft or Clustered Woodlover, and they often grow in bunches in absence of any other mushrooms.