That is a different product altogether.
Sphagnum moss direct exposure can be a problem - I had to stop using in in my potting soil mixes. But as long as it is well-watered into the lawn and you are not in direct contact (ie. digging in it or raking it) you should be just fine.

As far as I know, compost - whether vegetative, manure-based or mixed is safe. The commercial composting process heats the material sufficiently (to 170-180F or higher) to kill any mycobacteria and most other pathogens. That is why it is safe to use on vegetable gardens.

Given the potential for MAC spores in sphagnum moss, maybe you could ask your husband read labels more closely & buy plain Turf Builder or another product without it in the future. If he wants something more natural, there are products made of corn gluten meal, cottonseed meal, feather meal, blood meal and compost that would pose no risk to you and would contribute to overall soil health.

Sue