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You say that temps are high there. How high? Baby chicks need about 95 degrees the first week. (You will find some people who will argue for 90 degrees. If I stray, it is in the opposite direction, aiming to have a SMALL area of the brooder that is actually warmer than 95.)
If the temp in the garage is 85, for example, and they are only a week old, then they may be getting chilled.
Also, one way around the issue of bedding making them sick is to use shelf liner for the first week or two. This way, there is NOTHING they can eat other than what they should be eating. They will mess the shelf liner up pretty quickly. You can flip it over once, but then will need to change it out. Get the shelf liner that is really rubbery, not the slippery kind. (When you change the liner, you can wash the original one off. You may need to let it soak a bit. I don't use soap when I wash it, though. )
What type of chicks are you raising? If banties, the commercial crumbles "may" be too big, depending on the brand. You can grind it a little finer in a coffee grinder to make sure they are able to eat and digest it.
Do you use your garage? Could they be getting a draft when you open and shut the door? If you start a car in the garage they may also be getting exposed to carbon monoxide or other fumes. How about gasoline fumes? Do you store a lawn mower in the garage? Gas can? Other chemicals that might be giving off fumes? (I do have my car in my garage, plus my birds. However, I take care to open my garage door before starting the car. We don't store the mower or any chemicals (other than laundry soap and bleach) in the garage.
What, if anything, was used to clean the pool before the babies went into it? Could there be some sort of residue?
What are you using to clean their food and water dishes? Could there be soap or other residue on them?