Root rot? Fungus? Larvae? Is this shimpaku junipers roots healthy?

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I'm new to bonsai, I have around twenty trees but have only started bonsai this year so my experience is minimal. I recently bought what is claimed to be a shimpaku juniper online and encountered something I've never seen before, and from what I've researched, is due to an unhealthy root system. The bottom of the trunk ran parallel to the ground and had soil covering the bottom side. When I removed the soil to repot the tree I uncovered to me what look like some sort of fungus. It was white and powdery and it was all on the tree that was covered in soil. And I use that term loosely because it was a hard clay. Like I said I'm new to bonsai and my understanding is that you want a good drainage system, and this clay does not seem like a good drainage system. Also the roots in every tree that I've repotted so far has had off-white or light tan fibrous roots. This root system was scraggly, dark red or brown, and even gray and black inside of the ball of clay. They did not have a foul odor but there was a slight slimy appearance and when touched they broke away way easier than any other routes that I've worked with. I don't know if if this is related to the issues I think I encountered, but there were two big larvae of some kind inside of the mass of clayI'm new to bonsai, I have around twenty trees but have only started bonsai this year so my experience is minimal. I recently bought what is claimed to be a shimpaku juniper online and encountered something I've never seen before, and from what I've researched, is due to an unhealthy root system. The bottom of the trunk ran parallel to the ground and had soil covering the bottom side. When I removed the soil to repot the tree I uncovered to me what look like some sort of fungus. It was white and powdery and it was all on the tree that was covered in soil. And I use that term loosely because it was a hard clay. Like I said I'm new to bonsai and my understanding is that you want a good drainage system, and this clay does not seem like a good drainage system. Also the roots in every tree that I've repotted so far has had off-white or light tan fibrous roots. This root system was scraggly, dark red or brown, and even gray and black inside of the ball of clay. They did not have a foul odor but there was a slight slimy appearance and when touched they broke away way easier than any other routes that I've worked with. I don't know if if this is related to the issues I think I encountered, but there were two big larvae of some kind inside of the mass of clay. IMG_20250329_180015143.jpgIMG_20250329_180020477.jpgIMG_20250329_180034313.jpgIMG_20250329_180117027.jpgIMG_20250329_180316765.jpgIMG_20250329_180449428.jpgIMG_20250329_180506395.jpgIMG_20250329_180527687.jpgIMG_20250329_181612548.jpgIMG_20250329_181624708.jpgIMG_20250329_181713235.jpgIMG_20250329_181726808.jpgIMG_20250331_175735614.jpgIMG_20250331_180111528.jpgIMG_20250331_180120949.jpgWhen I reached out to the seller about what I found at first he told me the tree is dead and to take a picture and he would refund me, but then he tried to assure me that nothing was wrong with the tree and that it's fine and healthy and not to worry. He finally offered to accept a return of the tree but I would have to pay for shipping. I just haven't worked with enough trees to really know for sure but my instinct and research is telling me that it's an unhealthy root system and I just wanted some other opinions if they're really is any issues and if so what they possibly could be. I really appreciate any feedback and for the time taken to help. IMG_20250329_180015143.jpgIMG_20250329_180020477.jpgIMG_20250329_180034313.jpgIMG_20250329_180117027.jpgIMG_20250329_180316765.jpgIMG_20250329_180449428.jpgIMG_20250329_180506395.jpgIMG_20250329_180527687.jpgIMG_20250329_181612548.jpgIMG_20250329_181624708.jpgIMG_20250329_181713235.jpgIMG_20250329_181726808.jpgIMG_20250331_175735614.jpgIMG_20250331_180111528.jpgIMG_20250331_180120949.jpg
 
Did the larvae look like this?download.jpeg
If so that's vine weevil larvae, they will eat roots and cause damage
 
If you are going to grow in a bonsai pot you need bonsai soil, clay is for larger pots if at all. The worms in photo #83 (please don't do this with your others) are harmless earthworms.
 
If you are going to grow in a bonsai pot you need bonsai soil, clay is for larger pots if at all. The worms in photo #83 (please don't do this with your others) are harmless earthworms.
Im not sure what you are looking at, because the " worm" in a photo was most definitely a larvae of some kind. Maybe you are confusing roots with earthworms? I'm not sure but thanks for the advice.
 
I didn't see anything alarming in the roots that we can see in these photos, but I'm sure there are more experienced members who could be more helpful.
The foliage looks very healthy. I'm not very knowledgeable about fungi, but I think that what the white powder is might be a strain that decomposes dead plant matter. If I'm correct, it's harmless. Judging by the roots and foliage, I don't think it's an infected root system.
 
As others have said, I think though this root system is not ideal it doesn't look too worrying.

Tree health: Definitely alive and kickin', the top growth is OK so will likely be fine once you sort put the roots.
White stuff: Looks like mycelium to me, normal (often beneficial) fungus in the soil, often more apparent in compacted soils like this that haven't been repotted for ages, no worries.
Larvae: Yup bad! Get those suckers out, I feed them to the birds 😃
Soil: V bad and compacted, try to remove as much as you can, chopstick all around carefully, perhaps get the hose (gently!) on there to help. Watch out don't allow the hard clay to tear away lots of good roots. Get it in a new substrate that is good for conifers in your area. (Here in northwestern europe that'd be something like 2:1 pumice to akadama for example)
Root colour: Reddish and brown or white OK, black and slimy is bad, if that only appears to be a few here, you can cut those areas out.
 
I don't see anything alarming either, the foliage is very green, budding, and the roots are alive. But we don't see any rootlets.
It will grow better in a draining substrate.
 
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