We have a well, so we use well water. We have had it tested at the pet store, and they said it was okay, we just needed to put in stress coat. Also, I did everything the same with the water in my 1 gallon, which he was in before, and also in another ten gallon, and we haven't had any problems.
I have well water too, and it always killed my fish, always. I had to switch to buying distilled water to use or the fish would just die in a few days. So you may want to try that.
It could also be something with the plants and gravel. It sounds like pieces of the gravel are flaking off, and goodness knows what's in there since it's cheap Walmart gravel that's probably made in China. They've put lead in baby toys, I can't imagine that they're overly concerned about what's in fish gravel.