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Fungi forest is a nether biome. It consists of huge mushrooms and other small mushrooms. This was an idea from the Idea Respitory.
This biome is a nether version of the overworld Mushroom Island biome, featuring very tall giant red and brown mushroom, many glowshrooms, flat mushrooms, toadstools, and tiny red and brown mushrooms. Mycelial Netherrack generate along with soul sand in this biome and it's the only biome to generate the Mycelial Netherrack naturally.
It was added in 1.11.2, replacing the original Fungi Forest in the overworld. However, it was removed in 1.15.2, being replaced by Fungal Jungle, which also generates in the overworld.