First Grow!

Hello and welcome to GD. Right off the bat, I believe you have over watered the little one. From the pictures above, the medium is quiet saturated and this can drown her roots out. In the seedling stage, there's no root system to take up all that moisture and she can drown/starve (this is the yellowing that is occuring. Starved of Nitrogen). In early stages, I recommend localized watering of about 50-100ml of water, .5-1 inch away from her stem. For the mean time, I would allow the medium without a root system dry out. It might take some time, but it will dry eventually. Good air flow and gently tilling the soil (where there are no roots) can help dry it sooner. You are correct about the light being to close. The symptoms are there and you caught it. I usually don't give hard answers on recommended heights, since some strains handle it better then others. But I do suggest working on finding that sweet spot for your specific lamp. LED's are relentlessly intense and most manufacturers suggest a 60-75cm buffer between the lamp and the seedlings. Lastly, I wouldn't go as far as repotting before trying a few of these other things that may be far less stressful. I over-watering and light stressed my plants first grow too... Hell, I think most of us did. But a little tweaking and you will A okay 👍 Good luck to you and happy grows. "Every little thing, gonna be alright"😉👌