Strange Velvet Worm

One of the common tier items in Fossil Archaeology.
Requires 35 Fossil Archaeology Fragments.

Common tier Fossil items:
Beautiful Preserved Fern
Black Trilobite
Twisted Ammonite Shell
Insect in Amber
Strange Velvet Worm
Devilsaur Tooth
Ancient Shark Jaws
Vicious Ancient Fish
Feathered Raptor Arm
Shard of Petrified Wood
Imprint of a Kraken Tentacle
Proto-Drake Skeleton

Rare tier Fossil items:
Ancient Amber
Pterrordax Hatchling
Fossilized Hatchling
Fossilized Raptor
Extinct Turtle Shell

Perhaps I'm misunderstanding the description, since there's plenty of ocean worms that match that descriptions...but with all the giant moths flying around no one's ever seen a caterpillar?
Actually...where the hell are all the caterpillars?

The description is a reference to a real animal: the Velvet worm. It shows properties of two large animal Phylum: Arthropods - Crabs, lobsters, shrimp, spiders, flying insects, millipedes etc.... Annelids - Segemented worms, including the earth worms and leeches. Velvet worms are thought to be a living example of a snapshot in evolutionary time, when some Annelids slowly began evolving ito early Arthropods. Their exact calssification is highly debated however and changes quite frequently. To be clear, the velvet worm shows properties that should be enique to both phlya (plural for phylum