"Part of me is hopeful that maybe the fungal issues in the cns and gut are actually displaced and moving outward to the "periphery", heading out!"
-yes, it might a good sign, and Iodine has a weakness; fungus. It can support the body in fighting it, but is not a really the best fungus killer. I believe you will have effect of borax, it can be used topically for all kinds of itching and bad hair as well as internally.