Hi izz;

You're right. It's the moisture content. Bringing the moisture content down and reducing the organic matter they munch on (waste) will not allow further larvae to survive. Worms can survive on nothing for a long time. You can start the bin over, but what you're doing is excellent to resolve the problem over time.

My concern is the larvae might be gnats. (The pictures did not pull up.) Gnat larvae will not hurt the worms but become a problem in your home. Nothing hazardous, just a pain.

The only thing I recommend you do is: Cover the holes with some landscape fabric or surround the bin with mosquito netting. If the larvae mature into flying insects, they won't get out. Then, when you want to open the bin, take it outside first. In this way, if some flying insects are inside, they'll be let loose outside instead of in your home.

Don't feed any more until the matter is resolved. Only spray enough moisture to keep the wormies happy if you even need to do that. Don't worry. The worms will chow on their own waste and the dry material you put inside.

Any of these living things you find are normal and will contribute to the composting process, too. It won't hurt your plants. It's just gross to look at and have indoors.

Let me try to upload the picture again

And the eggish thing

It's simple fly larvae and maggots. It usually means that you are feeding too much for the worms to keep up with. Keep newly added food covered.

Should i be keeping it covered with dry shredded paper?or also keep that moist