Thanks for the new pictures and they look like they are just part of his color, my guy has those on his head too and his head is dark blue and the spots of a light blue color. So unless they get bigger or start to grow some fuzz on them I think they are okay but keep and eye on them for awhile.
I hope he will eat the Omega One pellets because with him only eating the bloodworms are only like treat and not healthy for him like the pellets are.
Are they frozen or freeze dried ? The freeze dried can cause bloating is why I ask.
Since he is breathing heavy I think it could be gill flukes since those can cause that but I cant be sure so I will read up on those and ask someone who knows to have a look at this thread.
For now and till you get some more help I would keep his water extra clean in the 1 gallon tank and add fresh Espom salt everyday when you do the water change and try to keep the temp of the fresh conditioned water as warm as the water he has been in. Hang in there for more help.