I use Jiffy pellets which expand when wet and have a netting around them. I rip the net off as I transplant, it doesn't bother the roots as the net tears every easily but I have had plants that didn't grow well if it was left on.\ although I have had roots push through it. The peat flower pots that folks use to transplant into are much worse. I always remove that and chuck it in the compost.
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