Hello Eldritchscotchtober,
that looks like mold. It could be that the soil was already contaminated before you started to use it. Once I had to throw away a whole bag of seedmix, just because the corners were full of the same looking grey particles as we see in the picture you provided.
Answering your earlier question about the hangover: Always use good ventilation. I do not believe that the plant starts to produce toxins when dying. It's a little bit too hard to tell from here what the probable cause for it was, but I would bet on the lack of airflow.
Good luck with your project, I wish you all the best! 👽