I really don't know what this is! It's on the inside of the second glass. I asked Toyota but they were pretty clueless too! I'm attaching a picture! I really appreciate any help! Cheers! www.flickr.com/photos/65807293@N07/5991216714/
I was not sure if the display need to be replaced since this thing seems to appear on the inside on the glass.
Yes, you'll need to get it replaced under warranty. See http://priuschat.com/forums/gen-iii...82-fungus-growing-inside-dashboard-glass.html
My dealership took my dash and instrument panel apart and cleaned the lenses to fix my problem. That was about six months ago and the problem has not returned. The "fungus" on mine started out as condensation from the defrost vent during a heavy rainstorm. This condensation eventually evaporated and left a residue. I have used the defrost many times since then but have not seen any further signs of condensation. My guess is that they sealed whatever "leak" there was around the instrument panel.
You are talking about dealership warranty, how about manufacturers warranty? Perhaps contact Toyota directly (Japan)?