@doschicos I think we agree. The risk of market loss in a MM fund is real but minuscule. Personally, I keep all “cash” in a MM but for those who are going to lose sleep over the minuscule possibility of market loss I think a CD or savings account is the better option.
OP, even without the state tax deduction the 529 might offer you a tax free option on earnings that effectively yields more than any savings, CD, or MM after taxes. You can do the math there and decide if it’s worth it.