I have a place on my hood that had a recess along the edge where it lined up with the fender. I ground out the area and laid in fiberglass with epoxy resin to make the edge wider in that area. After sanding, the new edge has some loose/soft fiberglass exposed. what do I need to do at this point?

Maybe redo the repair? Your description is vague, could be uncured resin or just glass that was not fully wetted with resin. Not seeing it. I could only recommend redoing it. Unwetted glass can sometimes be helped with some more resin, but it's not the right way to do it. The right way is to make sure you are laying the glass so that it cannot contain voids and can be rolled or dabbed with a brush until all glass is wet but not too wet, and all the air is out.

Wet out your patch on wax paper before you apply it to the panel. You'll find it's far easier to wet out.