This insect is called "Cordyceps Bat Moth" and this fungus is called "hirsutella China", which belongs to the fungus of ergotaceae and Cordyceps.
Cordyceps bat moth is a small moth with grayish brown stripes on its wings. Its larva is a small white mealworm, which lives in the Qinghai-Tibet Plateau and its surrounding high-altitude areas. In winter, larvae hide under frozen soil for the winter. After the soil thaws in spring, they will climb to the shallow soil, feed on the roots of various herbs, make themselves fat, and then cocoon and pupate into moths.
But the fungus hirsutella China also lives in this area and soil. They will parasitize the larvae of Cordyceps hepialus, feed on the nutrients in the larvae and grow in the larvae. Once the nutrients in the larva are consumed and the mycelium fills the larva's body, it will grow a base from the larva's head, just like a grass, which is reddish brown in color and produces countless spores on it. These spores will disperse with the wind and then fall into the soil. If spores meet larvae in soil, they will attach to the larvae and germinate in the larvae, grow into new mycelium and start parasitic life again.
The daughter's larva growing from the head is actually dead, but it still retains the shape of a bug. At this time, if it is dug out of the soil, it is Cordyceps sinensis, which is often called Cordyceps sinensis.
Because the season when Cordyceps appears is usually April-May every year, it disappears in June, which is basically late spring and early summer, so it is called "Cordyceps sinensis".
This thing has nothing to do with plants at all, but a complex of animals and fungi.
Chinese Caterpillar Fungus