Cotleydon

It isn't mud it is a jiffy seed pod I put it in an oz of water to soak it up it just looks muddy from the picture if you look closer you can see the mesh its just moist to the touch
 
You're keeping it too wet. We can see that from the soil around the pod.

I accidentally ripped a few cotyledons off of seedlings. She'll be fine as long as you set it dry out for a while. That wet environment can cause an infection in the wound from the ripped off leaf.
 
I've been having issues with jiffy pellets the moisture level is difficult to maintain, try doing same thing with large pots soak them then let them dry out, keep one to weigh on a scale if your hands cant tell
 
It could be a mutation. The plant from my last grow had lots of mutations on it's leaves. In your photographs, I see a pair of adult leaves on the way. So, that's good.
 
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