thanks, i wouldnt transplant quit yet, only because you want them more healthy looking, but as soon as they are they will be ready for a transplant..
your only issue is that the medium is staying wet too long and it’s slightly suffocating the roots, also the cotyledon leaves are really curled, as with the leaves looking a little blistered, and being stunted, signs of overwatering in your case, you should be fine once they recover, which could take a week or two.
what can help is next time put more holes in any containers your using even on the lower sides or use bags, at least use bags for your final pot.
you can try placing a fan underneath those pots pointing upwards to help dry quicker in the meantime or a seedling heating mat, but careful with that one or just sit it out, but don’t water/feed until those pots are like a piece of styrofoam, seriously.
it’s really night and day to plant health between the soil being constantly wet and being let to dry out..
a plant that is wilting and weak looking from underwatering will usually recover within a day or less, but an overwatered plant can destroy everything and technically be the root cause of everything from pest to mold/mildew, toxicities, deficiencies, etc when the real problem is just overwatering..
