White mold-like covering on tree seedling roots in tubes

Citra, FL(Zone 9a)

What does it mean?
I was just at a tree nursery and many of their CO Blue Spruce in tubes had a white, mold-like coating that rubbed off easily around the roots. Is that bad? When asked, the attendent said it was bad and that they'd have to go into cold storage. What is it? The little trees sticking out of the tubes looked fine.

Thank you for your response.

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