Yes, that is a seed head. When Saint Augustine grass is feeling stressed, possibly not enough water, it will send up seed heads as a defense mechanism. It may need some fertilization as well. Stay low with the nitrogen and put in a pot ash fertilizer. Something like a 7-0-20. The pot ash helps the roots to grow. And/or it may need to be mowed a little bit more frequently. The more frequently you mow it, the thicker it will get. If it is watered and fertilized enough.
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