It could be a bit of both , you can never be sure in those paper type pots , I think after you transplant into better drainage pots and build your rack for them to sit above floor you will see a big difference.
I make lots of holes in them like the normal pots before using.It helps.I also bake them for 15,20 min in 90,100 C to get rid of the eventual molds.That was better but still they are a little bit uncomfortable to water.I get used to it but to be honest they were nice only if you wanna move you outdoor plants and plant them like that,with the pots.Outdoors they are fine,indoors more of pain in the a.........
Overall you can skip them next time:)
