I agree, I wouldn't use cedar tree oil as it is the oil in cedar chips that causes respiratory issues in birds. For the same reason, I do not use DE as it is known respiratory irritant (though reported to help with insects IF kept dry).
For ongoing mite/lice prevention, be sure the birds have nice dry dusting areas for their daily bath. Sprinkle wood ash and permetrin/poultry dust on those areas and let the birds do their thing.
Keep coops and bedding clean, sprinkling permethrin dust under the shavings/bedding, then add fresh bedding.
You should do regular checks and dust any bird with poultry dust that shows any evidence.
If you have a lot of birds, or want long term protection, you can purchase "No Mite" strips and place in areas where the birds will brush against them such as the coop doorway. These are a permethrin embedded strip and said to be very effective for many months
https://www.meyerhatchery.com/productinfo.a5w?prodID=MITE. I've just purchased a package from Meyer hatchery at very reasonable cost to see if I can keep the infestation under better control this year as I had my first time ever population explosion with mites last summer due to unusual weather conditions, and I am already seeing evidence again as we had a very mild winter.
The other alternative, though off label but used for chickens for years, is seasonal application of Ivermectin. You can periodically place cattle injectable into the water and let them drink from that for a few hours. Or, many of us buy the cattle pour on and place a few drops on the back of the neck between the shoulder blades (skin level). You treat, then treat again in 7 to 10 days, a third time if you have a heavy infestation. You will need to pull eggs 7 days after last treatment (although a number report eating the eggs without ill effect as the residue is moderate and the dosage well below human threshold for a medicine that is used in humans). Some suggest the pour on Ivermectin stays in the system for 6 weeks, but I have a study that shows all Ivermectin, no matter how it is applied, becomes systemic but clears eggs after 7 days. I've used cattle pour on with great success.
My experiences
LofMc