Planting depth

I saw on your pics that your cups are only half filled, so your seeds are in the shade most time of the day, except when the sun is at his highest point. Next time you should consider filling your cups or cutting the cups so the seedlings can use more sunlight ☀️ Good luck !

Light intensity will play a role in how far they stretch. If your lights where closer they would not have stretched as much. I'd keep the planting depth to anywhere from 1-1/2 inch deep. Good Luck!

They look good to me. You don't want them to close to the soil Leaves sitting on soil are prone to getting damaged. People will leave some space in the planter to allow them to raise the soil level which is most likely what you are seeing. Those are big pots for the plants, Don't saturate the whole thing until she gets big. Only water a bit around the stem. At that size you want to avoid having the soil right were the stem is being wet( to avoid damping off), Water a circle around the plant and remember to let it dry down to 1" below the surface. She wont need much.