I start my peppers and tomatoes in 3.5 x 3.5 x 4" plastic pots and do not pot up. In fact I have never "potted up" any seedlings in over 40 years and grow healthy plants that do very well when transplanted outdoors. My tomato seedlings are typically 12-14" tall after only five weeks. From my point of view, potting up is just a lot of extra work for no benefit, in spite of the 1927 study that showed better root balls (but not better productivity).
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