My bad , I'm posting photos now
I think this is correct, go for the transplant to your super soil, it's ready. This "weird looking" plant looks pretty normal really, I don't see a problem other than it's time to give it some real soil.
I'm with you guys on more light. He might want to bury some of that stem too when he does transplant.
That should be avoided as it could cause damp off at this young age.
oh wow, you may not have any nodes left.
