The UV (ultra violet) rays cause the wood to deteriorate (weather) and your washing technique just blasted away some of the wood that remains, and wasn't weathered.
One could sand it down, but I would just let it go and enjoy the 'softness' while it lasts. Likely it will wear off in time. Scraping with a sharp scraper might work too.
A technique for washing that would be less rigorous to the wood, IMO, would be to just scrub with a brush and a bleach solution (or one of the deck cleaners) and rinse with water. That will get rid of the dark color which is mold, and causes wood to turn grey to black.
Power washing isn't very good for wood surfaces as the wood (especially cedar) doesn't have the strength to resist being ripped apart.