Hi reticulata
After reading your email, I have a couple of suggestions to make.
First, corys are very sensitive to their water conditions and dirty water will cause bacterial growth and die off. Your tank is small, and with it only partially full, spoiled food can cause serious problems very quickly.
I use a bare bottomed tank for fry too, but suggest a 10 gallon as a spawning tank, and later a fry raising tank. I keep it full of water too. This way, daily water changes can keep it fresh and disease free. The tiny fry won't produce enough waste to effect ammonia or nitrite levels, but uneaten food can do a lot of harm.
Actually, I don't know why the cory fry couldn't eat powdered food from the start, but I wouldn't take a chance. I use the Liquifry, (just for the first few days) which can be flushed out through water changes, then microworms. The good thing about them is that they live for a few days, so they are safer, in this respect, than dry food. I have never used bbs, but have heard of members who use them with success.
In just a few weeks, you can feed regular flake and watch as they gather around the large pieces and eat them completely.