I recently completed a new distillation of some smokey, peatey Scotch which is now aging in mason jars with a bunch of second-use cubes previously used for an older Bourbon that I had saved for this very purpose

However, when I made my cuts after smelling and tasting, I thought I had a good hearts cut of 62% abv that was suitable for aging. At the time, it smelled fine, and I put it on the oak. Now, after a few weeks, I watered down a shot for sampling and I got a good whiff of some funky, mildew-like tails coming through. Honestly, the Scotch is already tasting pretty good (possibly my best yet)- a nice balance of grain and smokey peat. It seems like it has some potential there. But the Tails-like smell is off-putting and makes think my nose was completely off base or stuffed up when I blended it. I like a funky Laphroiag or Lagavulin, but I think I went far too deep into my cuts...
Did I completely screw up here? Or, as some have commented here on the forum, the Heads and Tails will dissipate over time, leaving a nice complexity to the aged Whiskey?