It Should be underground, or with better texture.

PS: (Edit) Better texture - dark purple, maybe pink

Maybe moving glowshrooms to the crafting procedure of #12 should fix this issue. :D

So They'll Spawn only in the fairy rings?

Maybe removing glowshrooms to the crafting procedure of #12 should fix this issue. :D

Nope, they will be craftable there.
It is not thought to the end, so I will think about it. :)

What The Recipe Will Be?
x x x
x z y
y y y
Or What?

Nope, like i have said, there will be a new crafting variant