I like working with spalted wood. Depending on the use, I take different precautions. If I’m going to be turning it, I’ll often try to stabilize it first, which will kill the critters and encapsulate the spores in the resin. At that point, it’s just like other resin turning. I generally use an N-95 and run the air filter.
If I’m sawing it for flat work, I will often need to mill it before I can stabilize it. Again, an N-95, plus run the air filter. Maybe open the door and window so I get cross ventilation if the wind is blowing stuff out of the shop, rather than in. These are the same precautions I take with the MB (methyl bromide) treated pallet wood from India. But the dust lingers in the shop, so I’m almost certainly unmasking before it’s all clear.
As for stabilizing it, resin is probably best, but non-trivial. Soaking it with BLO works, but takes a while to cure. Shellac cures quicker, but solidifies the wood less, too. Everything’s a trade off.