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I don't have experience with red LED lights. You could make a change to the top so it can be temporarily lifted on the longer side to allow for more light and get around the claustrophobic ambience. And when they are all inside and snuggled up, the top can be closed back.

Vent holes are good and I would even add another entrance as they grow quickly and might get stuck in case of panicking. From my experience the best designs are round, so nobody can get caught in a corner.

They could asphyxiate in this box as there is no air supply but the little entrance. And chickens are afraid to enter dark spaces as there might be something in the dark lying in wait to attack them.