We had a mold issue in our previous rental. The property manager’s solution was to clean it with 409 and paint over it with Killz. We were month to month at that point and left immediately. I’m guessing you live in one of the cute older neighborhoods of San Diego. We learned from a experience a lot that haven’t been redone are poorly insulated and have moisture issues.
I know it’s a headache, but I’d suggest moving. The fact they’re willing to release you from your lease suggests to me that 1) they know there’s a problem 2) they’re not willing to pay to fix it and 3) they won’t be eager to fix other issues that will come up with the property. Try to get in writing a guarantee of deposit return.