From the picture I'd say your ammonia level looks to be very much on the safe side. I've seen much darker API results with Amquel in the mix and all of the fish were fine. We all are always learning so its all good.
More advice that you didn't ask for...
Keep the skimmer skimming wet. I mean really wet. This will get the dead stuff out faster.
Keep a ton of flow going in your display tank. If you need to, buy a spare powerhead. Corals grow faster with better flow anyways so you'll be glad you have it in the long run. Oxygenation is key.
If you see any dead bristle worms or dead other stuff, remove them with a net.
If your water is still cloudy, put that 50 gallon batch of water to use right away. Start with no more than a 20% water change per day. You don't want to make too many changes too fast but smaller water changes per day are healthy.
Even with all of the above, your tank will continue to be medicated for weeks to come. As soon as the ammonia concerns are completely put to rest, you can kick back and enjoy your vermetid free tank!