The answer to 'why is my mulch thin grass' is that the mulch layer is likely too thin, preventing proper moisture retention and nutrient delivery to the grass roots. Thin mulch can also allow weeds to germinate more easily, further crowding out the grass.
The ideal mulch depth for most grass types is 2-4 inches. Anything less than 2 inches may not provide enough insulation and moisture protection for the grass. Be sure to replenish the mulch layer regularly, especially after it decomposes over time. Applying a thicker, even layer of mulch will help your grass thrive.