Does this look like dry rot?

Not dry rot. just some kind of filler.

...or if it is some fungal growth, it's restricted itself to the tongues and grooves!
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Certainly not dry rot or any other fungal growth, the floorboards and joists are in too good condition.

It looks like some kind of wadding pushed into the gap. I suspect someone has had that board up and cut through the tongues leaving a wide gap and a howling gale blowing up through the floor.

If you look closely you can see the saw marks along the edge of the next board.
 
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