Fungus or mold

Came back from vacation and while I was watering a whole Branch died. At the bottom was this black looking fungus It came out of nowhere. Could my plant have been overwatered? the humidity isn't bad right now in the summer. should I graft this branch back after I cut out that spot. What I've done was hit it with a torch and spray it with a little bit of Fungicide and peroxide any ideas. It's been a week and it hasn't gotten any bigger or worse really20210804_072450.jpg
 
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