I think that is what they call a peanut worm, the large end should be in a whole in the rock while the skinny end will stretch out and grab food and detritus.
I'm not sure once they are out of their tube, I'm not sure if they will beable to get back in or make a new one. I would just flush it and let the others to what they do if you find them....Not sure of any issues with them either.....
They are just detritivores, they don't bother anything. I've had some huge black ones come in with ricordia rocks. I think they are mostly nocturnal tho.