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Help with lawn problem

Hello all, my friend's lawn developed a large ring of dying grass a few weeks ago (about 1.5m wide) exactly where she had a tree chopped down about 8 years ago (the stump is still there). Now mushrooms have appeared in the ring. We looked it up and found something about fungus living on the rotting wood under the grass? She doesn't mind the mushrooms but the grass is dead looking in a really wide large ring. Should she try to kill the fungus that's possibly feeding on the rotting wood or ignore it and simply reseed the lawn? Many thanks.
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