I agree with others that even pic #1 didn't look great, but that could have been old damage - you say he was healthy enough to bring home.
IMO it looks like he may have gotten sweepered by the meat coral in the night. Too close for comfort in my book. If you try one again, keep it away from the meat by 18" or more.
Either that or one of your fish beat up on him. Otherwise how'd the sand get on him? Any fish that bury themselves at night?
And on the tank's nutrient levels, I wouldn't try any more stony corals until you reliably keep nitrates <10 ppm.
It does seem like you may have too many (too big) fish in that tank, btw.
If you have no short term plans to upgrade, I would strongly consider selling/giving away your largest fish ASAP. There's no way a (e.g.) Naso is going to grow up happy and healthy in a tank that small that is that crowded anyway, and it will make a big difference in your nitrates.
Short of that, switch to a weekly water change schedule. Try to feed less, and less-often if you can. Cleaning the skimmer daily will help a little. Swirl your finger or something around in the sand bed to see if you have detritus in there. Flow looks to be on the weaker side, and this is likely to happen over time anyway. If so, big nitrate source - siphon out the whole bed over 4-5 water changes and improve flow to keep it from happening again.
GFO, carbon, denitrate pellets, et al are band aids. Unless you find a detritus issue, the problem is the quantity of nutrients going in, and that is anchored to the bio-load being too big.
I hope this helps!
-Matt