Unfortunately all I have are negative comments about the products you use.
Cycle: this is useless. In a properly cycled tank the nitrifying bacteria and other microorganisms reproduce, and do not die off. you do not have to keep adding more. Many years ago when scientists started studying which bacteria were found in aquariums they found some that could be easily bottled (these bacteria entered a dormant stage) so they started marketing these bacteria as the nitrifying bacteria that remove ammonia and nitrite. Unfortunately the ones they found were a short lived group, and there were other species of bacteria that grew and took over. This group of bacteria proved harder to grow in the laboratory in clean enough cultures that they could be identified, but when they were finally isolated they proved harder to handle than the 'wrong' bacteria. The right bacteria (various Nitrospiros spp) do not enter a dormant phase, and are therefore harder to bottle and keep on store shelves.
Anyway, the point is that in a cycled tank you do not need to keep adding bacteria. They cling to the filter media and pretty much everywhere else in the tank, and do not swim in the water very much. Water changes do not remove them. If you clean the filter media with water removed from the tank for a water change the bacteria stay alive and you do not need to add more.
If something happens to kill them, or reduce the population then you should add the right bacteria to re-populate the tank. You are looking for Dr. Tim's One and Only or Tetra Safe Start. All other 'bacteria in a bottle' products have the wrong bacteria. But you do not need them just for ordinary water changes. They are a good way to start a new tank. Use once and that is all is needed.
Next, salt.
You are keeping fresh water fish. Some do not mind a little salt in the water, but most do not need or want salt.
The use of salt originated when it was noticed that fish newly added to the tank did better when salt was added. At first nobody looked into why. When they did they found several things:
One is that when more fish are added to a tank the nitrifying bacteria take a little time to catch up to the new bioload, and one toxin that is present for several days or longer (up to 2 weeks) is nitrite. Nitrite crosses the gills and caused Brown Blood Disease. Salt (actually the chloride) protects the gills and prevents the nitrite from crossing into the blood. Since the nitrifying bacteria eventually do catch up, the salt is only needed when nitrite shows on a water test. 1 teaspoon per 20 gallons is the dose, and keep up the water changes to reduce the nitrite; keep it under 1 ppm.
Other effect of salt: When a fish is under stress they tend to lose some control of their osmoregulatory system. If they were accustomed to water with high Total Dissolved Solids the fish may have a difficult time removing excess fluids from their system when they are put into water with low TDS. Add to this the stress of moving to a new tank, and fish would often die. If the fish keeper added salt (or anything else that is safe for fish and raises the TDS) then the fish had a better chance to live and adjust to the new tank. The salt in the water reduces the fluid gain into the body of the fish. The need for salt is not long term, and is not needed at all if a fish is moved to water that is most similar to the water it came out of.
Another use of salt: Many parasites can be killed by exposing them to water that is significantly higher or lower in TDS than the water they were in. For example, fish (and parasites) in a soft water tank, low mineral content get used to how much water is trying to enter their cells, and working just so hard to get rid of the excess water. Now dip this parasite infested fish in water with a lot of salt (up to as much salt as sea water) and the parasites cannot cope with the different water. Fluid starts leaving their cells, and the parasites die. The fish is also exposed to the high TDS water, but you remove the fish before it is stressed too much. The single celled or very small multi-celled organisms (the parasites) die. The fish lives.
The secret to this cure is not the salt but the CHANGE in levels of salt. From 'No Salt' to 'Lots of Salt' is what kills the parasites.
Keeping salt in the tank all the time does nothing, the parasites adjust to it, and when you want to treat the fish to kill the parasites the CHANGE in salt is not there; there is already salt in the tank.
(The opposite treatment works too: certain marine fish can be dipped in fresh water to kill external parasites)
Next: Melafix and Pimafix. I used to think these were pretty safe. I had used them with no adverse effects at the very first sign of fin rot in a treatment that also included plenty of water changes, and the fish lived, the fin rot went away. (Note: the fish involved is still with me, and his lady has just laid a new crop of eggs)
However, I have recently heard from a fresh water fish expert (specializes in native fish in the American Mid West) has noted that in the aquarium where he works (laboratory, not public aquarium) that the scientists noted that these products interfered with the breathing reflex in certain groups of fish. The fish would slow their respiration to the point of death if these products wer ein the water.
Also, the more experienced Loach keepers here at Loaches Online have noticed very poor results when these products are used on Loaches.
Also, it is known that Anabantoids (Bettas) cannot deal with this product. (the company makes a different sort of product for Bettas) I therefore have not used it in most of my tanks, because I have a lot of Gouramis. (And have not needed to anyway- very little fish disease)
As for what happened to the Clown Loach:
Flashing is a sign of irritation. It can be from several causes. Ich is certainly one cause, and the flashing is soon followed by the appearance of the characteristic white spots that are the growing parasite.
Other causes of flashing can be velvet, a hard to detect parasite, or water chemistry issues, such as an irritant in the water.
When your treatment was followed by worse symptoms, the Clown seems to have developed excess slime coat and was shedding this slime coat this is also a hint that there is some irritant present. There are also diseases that can result in a fish producing excess slime coat that then sheds.
http://www.nationalfishpharm.com/fish_d ... rders.html
Scroll down here and especially look at E, I and K. Might not be what was wrong, but there is a lot of info at that site about fish diseases.
Keep a close eye on your other fish, and it would probably be a very good idea to do more frequent water changes for a while. You will be improving the water by removing more organic matter, and if the disease or parasites are free swimming you will be removing them, too. An ultra violet sterilizer will kill quite a long list of single celled and simple multi-celled pests and diseases.
You can begin removing the salt from the system by not adding it to the new water. Allow the salt level to drop slowly over a couple of weeks.
Worms on the side of the tank MIGHT have been planaria. You can do a search for some pictures of Planaria and see if they match. I do not know if any internal parasites of fish ever hang out on the sides of the tank. Planaria live on excess food in the tank, and may be a sign that you are over feeding or under-cleaning.