I potted this guy a couple months ago as a cutting (it had calloused over).
It has had some old black spots that developed (? Fungus).
Over the last month it has developed black spots on the crown. Treating with fungicide but getting larger.

I went to move the pot to more sunlight , notice the cactus moving alot so gently pulled and it came out, no roots had grown yet.
I've noticed the black spots on stem and near base. Should I be concerned?
Thanks for the help.

I think you should be most concerned with the spotting on the crown. I would cut off the grow tip. The plant would eventually grow pups. If the Spots lower down the stem spread, you might need to remove it by cutting a concave channel. Feel if the calloused area is squishy, that part may also be rotten. If the calloused area is rotten you'll have to cut the rotten part off, and let it recalous.

All in all, cut off any diseased, or damaged parts, prod the cutting around the callous to find if more of it is rotting. If the black spots spread, remove them too.