I just saw this worm in my tank (about 3 weeks old tank is) It only comes out once in a while when night time lights are on. When i turn lights on or there is a flash it hide back inh the live rock. It comes out and has some sort of claw/fingers on it. grabbing what looks like algae off rock.
Doesnt have legs. It seems to live in the rock, or under them in a crevice. coming out when the moonlights come on, but goes in immediatly upon being disturbed by any means
Could be a peanut worm. I have one in a shady corner. Mine is tiny. It sort of telescopes outward and has like a bristly/teethy mouth and rummages through the sand. Its back end is attached inside a hole so it can quickly retract. Usually motion, or light. It retracts EXTREMELY quickly when startled.