It's a balancing act. Also, there's tons of opinions out there and every setup is dfferent. Did you need to add both Biopellets and MB7? Maybe, maybe not.
Ideally you're looking to control about two things in this main convo: Nitrates and Phosphates. Chaeto can be a good way to do this, but if it's dying in the sump, then you probably don't have adequate lighting in there. Its very photosynthetic (which makes sense). And mind you, Chaeto doesn't remove those from the system, just from the water. Pruning your Chaeto back removes it from the system.
My gut says you may be over feeding. Maybe cut back a feeding a day and see if you can stretch out the ramp up in NO3 more gradually. And once you have a good understanding in the daily change in NO3. Then once you get that down, you can figure out how much MB7 to keep it measurable, but not too high. (I'd say aim between 2-5ppm)