I've seen some reports that way, and the fungicide in question breaks down when heated - to hydrogen cyanide. Uh, not good...
Lots of things do. Even in cigarettes. Based on my very limited reading, so I can't point to a reference, the amounts involved in the concentrations of fungicide found are orders of magnitude lower than in cigarettes. Also, cyanide poisoning doesn't get you through damage to your lungs, so while it sounds all scary, it's not likely a factor in this outbreak, other than perhaps as a marker that chemical is in there. As an aside, burning certain plastics produces large amounts of cyanide as well.