I wasn't asserting that it's a matter of whether they can handle it, but rather how they handle it (i.e. grinding it up and expelling bits through their gills).
Understood, and IMHO that should still make absolutely no difference when only two small pinches are added to a properly balanced and filtered 125 gallon tank. Two pinches of food could go entirely uneaten in any of my tanks and I would never see
any cloudiness, let alone cloudiness such as what the OP is experiencing. And having raised most of the same species of fish as the OP, on NLS foods, I'm also quite aware of how these species handle the different pellet sizes, at different life stages. I also understand, and agree with, the fact that some food can get wasted when too large a pellet size is fed to a fish. There is no argument there, I just don't think this is an issue in this particular case.
As for flakes not being a nutritious food source....really? Has anyone else ever heard such a thing?
If you were directing that at me, I never said that, or anything remotely close to that. I was comparing the nutrient load of a set weight of flake food, vs the same weight of pellets, in a closed system. As an example, a 90 gram container of NLS flake food, is larger than a 300 gram container of their pellets, and two pinches of most flake foods, would not equal as high a nutrient load on a closed system as two pinches of NLS pellets.
Most fish require far more flake food by volume, to equal the same weight & same nutrient density of the same portion of pellets. Flakes also need to be fed in small pinches at a time, so as not to lose too many of the water soluble nutrients to the water column. This is why you won't find commercial aquaculture facilities feeding flake food, and why all of them feed pellets. Pellets are typically far more stable in water, and more nutrient dense, than flake food.
IMHO, any pellet feed fed to this tank, that has close or same nutrient density as the NLS Small Fish and TherA pellets, would have the same effect on the water clarity due to reasons already stated previously. The same reason that yourself and others have suggested, that being a bacterial bloom.