When wood chips first begin to decompose, they take nitrogen from the soil. Of course, eventually, the process reverses, and the wood chips add nutrients back, but this process takes a long time. If you bury a large pile of wood chips, you'll most likely find that few plants will grow around it. Annual plants that require a lot of fertilizer in a short time span will probably be the most severely impacted.
Wood-chip mulches rarely have problems with disease or fungus, because they receive good air circulation, but wood chips buried under the ground may breed diseases and fungus, as well as attract termites and other insects. These diseases and pests may infect nearby trees and plants.
Wood chips take moisture from the soil as they decompose. A large pile of buried wood chips might alter the soil moisture enough to damage surrounding plants. Significant losses of moisture might also cause the soil to contract or become unstable.
A rotting, wet pile of wood chips provides the perfect growing environment for snakes, mice and other rodents. Depending on where the pile is and your perspective, you might enjoy providing a habitat for wildlife, or you might find this a menace.