Thank you for answering my question! https://dinonline.org/2022/04/04/moldy-challah/
What are my options for taking care of the challah in chu”l?
I would like to avoid putting the moldy challah into my oven for health/safety reasons. Are there any other options?
You can also place the challah in a bag and put it respectfully in the garbage. It isn’t as good as burning it, but it is also an option.