Keep up with what you are already doing to make them feel better.
With ammonia that high whether because of a dead fry or overcrowding and filter capabilities issues you may get all type of diseases and parasites to come to life. If the adults were sick then it was probably carried on to the fry as well.
As for the bent spines, I have a few that got born prematurely with yolk sacs attached and grew up with bent spines but none of the other batches from exactly the same parents had that problem. So much about inbreeding..but water parameters can certainly cause deformities in fry.
I don't know if you mentioned water changes once a week but for growing fry I would do 3-4 water changes a week, if not every day when I have time.
Edit: Did you say ammonia is 1ppm or is it 0.1ppm. What type of tests are you using to measure it?