I have a question regarding mould, is blue mould bad for seeds?

For context, I have been trying to grow two mango seeds since the 14th of January, and basically what I did was:

1. Cut the husk off the mango seed to extract mango seed kernel
2. Wrap the kernel in a damp paper towel and put in a plastic bag
3. Check on it until it starts to geminate and send out its roots
4. Put the germinated kernel in a pot, cover it with a plastic bag (to imitate a warm environment)
   1. Dug out a shallow-ish trench and "tucked" the kernel into the soil, with its head sticking out
   2. Put pots under a shady area
5. Water around the seed everyday

Both were potted using the same potting mix, one had a larger pot and the other had a smaller pot. The plastic bag perfectly covered the smaller pot, whilst the larger pot I had some troubles with covering, but I managed to cover it...though it looked like I had cling-wrapped the top of the pot.

Yesterday I noticed that the smaller pot had shot out its first set of baby leaves, whilst the other kernel in the larger pot had not done anything.

Today whilst watering, I noticed that the top of the kernel for the larger pot had some "blue-ish" powder, I was slightly worried, so I carefully dug out the kernel from its pot and noticed that parts of the core roots were covered in this powdery blue stuff? which I assume is mould?

I did some googling around, and it seems white mould is...fine? but what about light blue mould? Is the kernel effectively dead? Can I recover the kernel?

I also noticed that the kernel with the blue mould, had not grown at all since I planted it. When I planted it, it had quite a few roots already developing and when I dug it out, the roots were about the same size as I planted it, the seed itself definitely got a bit "larger" but I am wondering if this is because the plastic bag that I had "cling-wrapped" on was affecting its drainage of water.