TGIF wrote:But aren't Spawned and Extending independent of Singular/Plural, since they are not carrying any helping verb(to be) with them (since they are being used as noun modifier)..
One reason I can think of is that logically spawning should refer to fungus and not tentacles.
Still confused

Oh...now I get what you mean.
(1) [a giant fungus] that is an [interwoven filigree of mushrooms and rootlike tentacles] spawned by a single fertilized spore some 10,300 years ago and extending for more than 33 acres in the soil of a Michigan forest.
Fungus = mixture of mushrooms and tentacles = spawned from spore = extends more than 33 acres.
(2) [a giant fungus] that is an [interwoven filigree of mushrooms] and [rootlike tentacles spawned by a single fertilized spore some 10,300 years ago and extending for more than 33 acres in the soil of a Michigan forest]
Fungus = mixture of mushrooms
Tentacles = looks like a root = spawned from a spore = extend more than 33 acres.
You mean it could be understand like (2).
But it doesn't make any sense because there is no verb for "tentacles" to think like this way.
It leaves clause for tentacles incomplete.
If spawned and extending is modifying tentacles then the sentence should be like below.
(2-1) [a giant fungus] that is an [interwoven filigree of mushrooms] and [rootlike tentacles "are" spawned by a single fertilized spore some 10,300 years ago and extending for more than 33 acres in the soil of a Michigan forest]
I think if there was a comma or a pronoun, "spawned" can modify "tentacles" but there weren't any.
(2-2) [a giant fungus] that is an [interwoven filigree of mushrooms] and [rootlike tentacles, (which) spawned by a single fertilized spore some 10,300 years ago] and extending for more than 33 acres in the soil of a Michigan forest]
And this is why the answer is "is extending".
There is a missing verb so it makes the statement awkward.
(A) [a giant fungus] that is an [interwoven filigree of mushrooms and rootlike tentacles] spawned by a single fertilized spore some 10,300 years ago and (the giant fungus)"is extending" for more than 33 acres in the soil of a Michigan forest.