Was the sand brand new or used?
Whenever I've raised Cory fry, I've used the limpopo sand from the main tank, just enough to cover the bottom to about 3- 5 mm, java moss, Limnophyla aquatica weighted at the bottom and Salvinia natans - all taken from the main tank where the parents live. The water comes from the main tank too. There's a light over the tank/Jar (yes I've raised them in a 3 litre glass jar too. No heater, the temperature is about 20C. pH below 7
The filter is a mature piece of sponge kept in the main aquarium filter compartment so it's always ready to go. It's slipped into an uplift tube and an airstone does the rest, just enough air power to move water through the sponge slowly.
All this means that there's more than enough friendly bacteria to cope with the needs of baby fish. Small daily water changes also help - 10 to 15% ensures no huge swings of parameters. At first, waterchanges use water from the main tank, once they start needing to be fed regularly, I start making fresh tap water changes.
Feeding, I don't feed them at first, they just graze on the plants, moss, and gravel eating whatever is available, after they start looking like a baby fish, I use the 'dust' from the food the parents get, good quality flake is useful at this stage (last time, I used Fluval Vegetable flake) I grind it down until its dust and only a very tiny amount, whatever sticks to a dry finger tip about 3 times a day - I have tiny fingers 😉 The rest of the time they pick at what's in the plants and in the sand. Most people give fry far too much food so it's best to be cautious, that way the water doesn't deteriorate so quickly.
The reason for the plants, apart from providing micro-organisms to graze and using up any ammonia produced by uneaten food, is that the fry need to fill their swim bladders at the right time and also need to access air for their labyrinth organ regularly . Being so tiny it can be difficult for them to get to the water surface. The plants allow them to stay nearer the surface and also protect them from any excess water movement from the airstone. At first, they spend most of their time in the plants.
Once the baby fish are about 1/2 an inch long, I put them in the main tank where they do really well. By that size, they are too big for my other fish to try eating as they have small mouths. I've done this with A. borellii in the tank, but wouldn't with fish like A. agassizii.
I hope some of this helps. It's difficult to advise not knowing all the parameters that you have there.