Looks fine. May want to get it under stronger light a bit sooner to avoid that stretch. When you transplant, if it isn't fixed, can always burry it an inch or two deeper to reduce that initial length.
length of internode will help guide while adjust lights. Don't want them stacked on top of each other, nor do you want great distances.
don't worry too much about minor early blemishes on first 2-3 pair of leaves... it is common and it will grow out of it. Common sense applied of course... not talking about extreme issues. an imperfect leaf, a spot or two etc... no big deal. it'll be pretty later, very likely.