Cypress mulch and a giant maggot

[Evenstar]

I expect a wood beetle larvae could wind up in mulch and grow up, lol. Likely quite harmless, and just a rare encounter.
One of the hazards of natural materials.

I agree. I've used cypress mulch for 2 years and I've never encountered a problem. If you are hesitant in the future, you can bake your mulch on a cookie tray for 20 min at 350. This would kill any bugs that might be in the wood.