This attitude and approach will take you a long way. While it's unfortunate about the fish death, keep at it and I feel you can succeed.
My question would be regarding the treatment at the LFS. If they were treating for some disease they had in that moment, they should not have been sold. If they were simply doing a broad spectrum treatment because they were newly imported, that's different, though it could explain sensitivity issues. I would aim for barely any detectable ammonia, especially in a volume of 10g.
As for your tests, brand makes a larger difference than you think. API tests are notoriously inaccurate. I think Nyos nitrate, Salifert/Aquaforest are all good choices.
I would also suggest some form of shelter in the tank to reduce stress as well as dim lighting.