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I usually don't mulch, I like things to reseed around.
Pieces with an irregular edge are likely coming from cedar trees, while rounder shapes usually come from oak or ash tree trunks.
It's great stuff, I'd definitely use it. A dusting of Sluggo or another of the non-toxic slug & snail killers could be useful, but no more so with rotted wood than with any other mulch. Of course, this is assuming it's not pressure-treated wood I wouldn't use that anywhere in my yard, not even on ornamentals.

Cj - an axe or sledge hammer will bust large chunks up quickly to make them less obtrusive. Otherwise well rotted wood sounds like ideal mulch! Mar 27, Since most arborist wood chips are chopped fresh from living or storm-damaged trees, let the wood chip mulch age and dry out, even as long as a season, before using it. If the pile heats and starts to compost, that should destroy any potential disease treeclear.barted Reading Time: 4 mins.
Jun 12, Don’t use old or rotten wood as a mulch; it will attract insects and rot the roots of your plants. Cypress Mulch: Be careful with cypress mulch because it will release a lot of salt into the ground over time and make your soil too alkaline, which is not good for plants.
Cypress mulch is a by-product of the lumbering industry. Jan 24, Decay in this portion of the tree can cause the tree to become unstable. Keep mulch about 12 to 18 inches from the trunk for any size of tree. Mulch should not be piled against the trunk (above) because roots may grow there (below) and girdle the trunk.