First, always give us test numbers. We have no way of knowing what "parameters are good" might actually mean without the actual numbers. BTW, parameters refers to GH, KH, pH and temperature; "conditions" is a better term for ammonia, nitrite, nitrate which is what you likely mean here. But we need the numbers please.
While waiting for confirmation, if the conditions show no ammonia or nitrite, and very low or no nitrate, the issue is almost certainly the wood fungus. Remove the wood immediately and do a massive water change, down to an inch above the substrate if fish are still alive in this tank, using only a conditioner. If fish are not in this tank, remove the wood and drain the tank completely. Rinse the substrate in bucket under the tap, same with filter media. This toxin gets into everything, I had it.