Ok welcome to the forum
First of all great job in getting these peppers to germinate, you have done very well so far, but you have way too many plants per plug. For the seedlings with cap still on it leave them alone they will manage to push it off or just grow with then still attached. Those plants are very small to be exposed to the direct sun they will die… gradually they need to be exposed … like early morning sun or late afternoon but don’t leave them out for hours. Just few mints a day and keep adding time until they become familiar with sunlight. Watering them should be only when they are dry and look thirsty in peppers it is always better to be on the dry side that overwater them. For transplanting u need two more weeks before you start transplanting them. What you growing is capsicum annuum which grows faster than other spices so it it not late to even start them from seeds now… so u r not behind or anything don’t worry…
Here is what you need to do
First: know how many plants you want to grow out of this try … do you have enough room for all of them. If yes do you want to plant all of them? If yes that’s cool if not you need to pull(kill) the weak ones and ones with cap still attached leaving only one plant per plug.
Second: provide better source of light because as you can see they are leggy and reaching out for sunlight. So if you don’t have lights put them by window during the day and out in the sun by afternoon about 4 pm
Third: prepare bigger cubs to transplant them in two more weeks. By this time they should have two more true leafs and ready to spend more time in the sun. it seems like you stil have the heat matt under then take it off this may kill the roots.. Now that we are in spring which feels like summer already you don’t need to keep the heat matt
Good luck
Please reach out for more assistance
Judy
