Sckel - I agree that that lacy looking stuff is probably not a fungus, but produced by the wasp larvae (in the same way that some produce silk to spin cocoons). This is not unusual, but generally restricted to certain groups of wasps.
I do not know what happened to that insect. I suppose it's wasp, not fungi, because seem to have cocoons in the middle of these lace. When I found this caterpillar, it is already in decay. I thought there was nothing else to happen, nothing would emerge. So I photographed the caterpillar and let the leaf somewhere in the yard, I no longer have this caterpillar to watch him again. Sorry, friends, I was not careful enough to keep the caterpillar. :(
It will be interesting to see if anything comes out of them. Stick them in a jar and see what happens. They look suspiciously like Euplectrus (Eulophidae) or one of its relatives - but you really need adults to tell.
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