Your soil looks ok. It doesn't look too wet in the pic, but let me guess, you watered it and the next day it looked sad? They don't like wet soil. Young plants like that don't have a very robust root network yet so a lot of water that gets added just hangs there in the medium displacing oxygen. Less is always more, especially when they are tender young seedlings. They don't need nutrients for the first 14 days either. They come supplied with all they need to get them started. The seeds know what to do. It's us dummies that think we know better that end up killing them lol.