GNATS? and peat pellet/soil issue.. Please help

I have just started growing in soil, many years ago I've grown in Coco, but I thought as the setup I purchased came with soil, I would use it.
I purchased the seeds, and was given peat pellets, after a soak in water, they came through pretty quickly in the peat pellets.
All was good, the seeds were growing quickly so I decided to put them into larger cups with holes in, like an idiot, I didn't make the wholes big enough, which I think caused it to get too moist, with no visible effect on the plant.

My solution was to plant them directly into the medium with the 5gal pots provided, I did tear the peat pellets as normal, one seed didn't germinate until late, which stayed in the peat pellet.

To cut a long story short, I noticed what looked like a spider crawl into the crack in the peat pellet, and another run across the floor, I think they are fungal gnats, either from the grow medium or the peat pellets. I live in the country, so it could have been brought into the tent by myself. All now appears to be okay (I think) I've used Cinnamon and some traps which haven't caught anything yet, and I am waiting on some mosquito dunks to use in the water.
The problem I am having is that the peat pellets are moist, but the growing medium is BONE dry. I am thinking about just taking it out, removing the netting completely even though one root is poking through (I haven't checked the other) and repotting them in smaller pots until they are big enough to actually go into the tent, and run some hot water through the bio mix to remove any nasties just to be sure.

Whats your guys advice? I don't want to cause excess stress on them, I am going to stop watering them now anyway, but I am worried about the pot being full of really dry medium and the seeds inside a moist peat pellet especially with the potential gnats. I have also purchased some Neem oil,
So what would you guys suggest? Just leaving them and once the mosquito dunks arrive water them as normal? Or take the netting off the peat pellet and put back in, or take the netting off and repot?
Also in regards to the gnats, I haven't seen any since, am I right in saying this could be a false positive because they could have already laid eggs? Hoping the cinnamon keeps them at bay until I can water with the dunks to kill the eggs if any?

I am also looking for some suggestions on spider mites, I haven't got any, but I am on a very limited time schedule and living in the country if something like that does happen I have to rely on 2-3 day amazon deliveries so I would like to have everything on hand (just incase)
The late germinator seems to be dying, it was extremely dry this morning so I put some soil on top, repositioned and watered it (it was quite dry) and it seems to be perking up. So let's hope it pulls through! Although with the tent I have I don't really want to have 3 plants in there, I will be trying some LST techniques but I wanted to pick the best of the litter, and maybe used the other in an old HPS tent I have.

Current average in the tent is 25 degrees C and 60% humidity.

Appreciate any help in advanced from you guys and I have read a lot of information here you guys have but would like to hear something specific to my grow!

Thanks

Pros of neem, its safe organic no toxic cheap.

Cons, smells like assholes, oilly as hell, often requires multiple applications, and has a tendency to bleach leafs.
Cinnamin is preventitive it will not kill off an active coloney.

Adult gnats are not a major issue above soil its the larva/juvinales in the medium that feed on roots that cause problems(also not major) if you managed to remove the adults all you have to worry about is if they laid eggs in your medium. There are products you can treat the soil with but i would rather not contaminate the medium with chems. Put a layer of something jagged and not soluble on top of your soil, when the juvinales craw out it will cut up their wings and prevent them from breeding, and/or crank your circulation fans up so high the clumbsy bastards cant fly right you wont have a 3rd gen. Keep your fly traps up to catch any of the resilent buggers.

Bacillus thuringiensis israelensis (BTi) is extremely effective, completely benign to plants, and will kill all gnat larvae in about three weeks.
It's ineffective against adults, but will interrupt the gnat life cycle.
A few drops of BMC Micro-lift per gallon is all that's required.
Yellow sticky traps will keep the adults in check and also function as a population monitor.
I had my first, and hopefully last fungus gnat infestation recently, after a few weeks, the sticky traps stayed clean, never saw another gnat.