Bessie one of the Instagram accounts I follow is Nettles & Petals and Jamie had a post a few days back about soaking his chili pepper seeds in a weak Chamomile tea for 30 min before sowing as it works as a natural antifungal and antiseptic. This helps break down the germination inhibiting outer layer of the seed but also reduces mold spores and bacteria.
Of course this took me down a bit of a rabbit hole and I saw other gardener sources suggest making an antifungal spray out of Chamomile tea.
I was thinking about trying it myself because I'm starting cuttings and didn't buy any vermiculite yet. Maybe it would work for your seedlings?