Any ideas about what is going on with this seedlings leaves? The first leaf I thought may just got damaged when it was very small but now more leaves are appearing with the same defect
Looks like peach leaf curl .
Yep-a-roonie!
I wonder how it got that at such a young age , I guess I need to pitch this one? I believe once the leaf dies the fungus is transferred to other plants
The fungus is everywhere. You aren’t going to deal with it by isolation. The options are fungicides, keep the leaves dry, or genetics.
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The tree is not a goner by any means. After it leafs out I’d give it a mild spray of copper with a sticker towards fall. Then start a regular ‘copper’ regime. Just a thought. The first year I had peaches the same thing happened to me. I simply pulled off every deformed leaf and the tree by mid summer the tree stopped producing those ugly leaves. (they stop producing leaves anyway by mid-summer). I had a lot to learn ten years ago (still do!)
I have about 40 seedlings , I think I will cull this one. i don’t really need 40 peach trees so this one goes on the failed list.
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Well, I feel a little self conscious going against the consensus, especially since I’m supposed to be somewhat specialized in peaches, but I have to be honest and say it doesn’t exactly look like leaf curl to me.
It could be, but whenever I’ve seen curl, it looks a little different. More radically deformed, or bulbous, or sometimes with some red mixed in.
Perhaps it could be a very light case of leaf curl, but the big leaf almost looks like it got insect damaged. Is it possible you have some piercing leaf insect which could have gotten to your seedling? Leaf curl requires significant rainfall/humidity to cause infection, which would require some form of overhead irrigation. If that is a question in your mind, make sure you keep the leaves dry (if possible) and water only the soil.
Either way, I agree with the consensus and wouldn’t toss the plant out. Even if it were leaf curl, it is extremely unlikely you could eradicate such a ubiquitous fungus from your locale.
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One thing you can bet on with seedlings is no one knows them better than you. When I say that I’m speaking from experience because they will wind up with diseases or resistance you won’t see anywhere else. I have pears or apples that grow nothing like domesticated varities. Seedlings from my perspective are never my bread and butter crop they are bonuses when they turn out good and expected when they don’t. I’m with olpea I’ve never seen peach curl without bumps and a little discoloration but I’m not an expert on stone fruit. Never rule out a genetic mutation that has curled leaves.
Yeah it could be mites, or aphids, or herbicide damage or some chemical damage.I have seen other species do similar things and not sure why either, but it usually goes away anyway.
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I’m well known with this phenomenon, the cause is not of an insect or disease.
Rosetting of peach seedling
Hybrid seed in temperate fruit breeding programmes is harvested in early to late summer, stratified for 2–3 months and germinated in autumn. In the subtropics, the seed is harvested in late spring, stratified for 4–6 weeks and germinated in summer when maximumtemperatures are often above 30°C.
Rosetting of seedlings can be a major problem under these conditions breeding programme.
Text source: The Peach
If I had 40 seedlings and one of them wasn’t happy, I’d destroy it. At least my cold, impersonal logic from a distance says so. Who knows if it were actually in front of me 
I set it outside last night and it got down to 19 so I think it is probably gone now. I plan to plant two or three trees per hole in some permanent spots and graft them next year. After seeing which ones take I will leave the strongest.
Does this imply not enough chill hours or temperatures too warm for seedling?
I had a big problems with seedlings once and turned out to be my grow light. I only determined that after ruling out all other possibilities. I’m not sure how you can ensure the performance of a grow light without having fancy light meters.
I just have mine in south facing window sills