I'd be more concerned about how much grass you are cutting off at one time. Remember the 1/3 rule. You're cutting way over that which is terrible for your new investment.

As for the mushrooms, they cause no harm. There's likely dead wood decaying in there somewhere.

What do you mean? I haven't cut the new sod yet. It's only 1 week in. I didn't sod the entire lawn, only the section in the picture.

The sod looks very healthy to me. I would cut back the watering to once a week.

Don't worry about the mushrooms.
You probably had a old tree under the ground.
Just kick them when you cut your new sod. Anyway, the sod looks great!

Day 16. I'm being careful not to mow the new sod, so I'm leaving it high at the edges.

I had new sod installed and little mushrooms popped up all over. They eventually went away. I think they just formed from all the new organic matter under the sod.