I don't like the look of the soil. Looks too moist and humus-ish without enough loam and sand. You want a mineral soil mix and a generic cacti fertilizer, Lophos don't like organic soil.
Thats's what the soil looks like in nature:
Shade is unnecessary, since I assume you live in Canada, this plant is a _desert_ plant. So put it in the sun, sun, sun. Also the pics are shaky and fuzzy, would it be possible to provide sharper pics? I first thought mites, but I can't see clearly, the Lopho may be also rotten due to poor drainage/too much moist.
Colour of the soil from professional cacti grower:
Everything Lophophora. Information on the peyote cactus et cetera. Welcome to the Lophophora Blog and happy growing!
lophophora.blogspot.de
From what I read, is that you treat your Lopho like a native Canadian forest plant, but look up where the natural habitat of the Yote is and look up the climate values of the local area for a more natural watering regimen. You might also want to check a professional cacti vendor's site and get his mineral soil mix for Lophos. There's plenty material on the web for treating a Lopho right.