I honestly can't tell if I'm seeing broken feather shafts or really small pin feathers coming in. Molt can vary a lot bird to bird and year to year. They do sometimes kind of have a feather explosion and lose a bunch all at once and can look pretty bald. That's considered a hard molt. And sometimes they have soft molts where feathers are lost very gradually and you can't really tell unless you look pretty hard for pin feathers. And anywhere in between those two, all can be normal.
https://www.wideopenpets.com/everything-you-need-to-know-about-molting-chickens/
DE is really ineffective, permethrin products are much more effective and usually easy to get your hands on. You will need to treat the birds and the coop if you have mites Try putting some sticky tape around your roosts at the ends, sticky side out, and check in the morning, see if you have any bugs/mites stuck to the tape You can also examine the birds at night with a flashlight (the mites tend to be more active at night) paying particular attention to around the vent and under wings, see if you find any bugs on them.
You can use either powder or spray on the birds (if it's cold where you are then they need to be completely dry before going back out), for the coop, sprays tend to work better, getting into all the nooks and crannies. You will need to treat at least 3 times at weekly intervals, the chemicals kill the bugs but not the eggs, so you have to repeat treatments to get the ones that continue to hatch. Remove all bedding and nesting materials and discard (burn if you can) and replace with fresh. You can also use Elector PSP (spinosad) which is supposed to be effective with just one treatment, but it's much, much more expensive and will likely need to be ordered.
Permethrin is toxic to cats, so if you have cats they need to be kept away from that. Don't know if the flea powder would be effective, depends on what's in it. There are many products that say 'non-toxic' and are herbal based and are not always very effective. Ingredients matter.
Here are a couple of common permethrin products, there are many brands, some are ready to use, some are concentrated and you mix with water according to the label instructions:
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