I am believer of baking substrate. With that said, I do it to sterilize and also to dry some out (cypress mulch). As for sterilizing, I will baked it at 280-300 for an hour on baking sheets lined with foil. To sterilize and dry (cypress mulch), 1 hr, take it out stir, bake another hr.
I don’t want to dry it out too much, I just want to sterilize it. I live in a dry climate so the substrate having some moisture helps me out. I use cypress as well.