The worm looks like a snail. A vermitid snail. They are snails that don't move. They create a tube and live in it. They send out a string of mucus which captures food particles and they eat them as they reel it back in.
They are harmless but the mucus can cause some corals to be irritated and close up so I always remove them if they are close to corals.
Now...that's just my best guess based on the picture...I really can't see it very well but it just strikes me that way.
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