"Plenty of water" could easily be too much. Don't water the plants again until you check the soil moisture. Stick your finger down into the soil and water only when it feels dry.

Wondering also if the leaf issues could be because they are now outside. If they weren't hardened off by the seller then they won't be used to sun and wind. Even if they were hardened off, putting them outside unprotected after they had just been stuck in a box could cause problems.

Rodney

OK I have another shipment coming in case these ones don't turn out. I'm not a pro so what do you suggest for hardening off just sticking them in a shaded area protected for a few days?

And if the issues would be caused from not being hardened off do you think there's any chance they will recover?

Looks like there's new leaves/shoots coming out from where the old leaves fell off

Most likely the watering issue mentioned above and lack of hardening off. My first mail order peppers my first year of growing (I now plant most all mine from seed and harden them off) I put the peppers out in full sun and all the leaves burned and fell off. Lesson learned, but as you see with yours as with what happened to mine the tiny leaves forming, they will recover, just don't over water or watch them every second of the day.

Ok thanks. I hope they snap out of it. I'll post pics in a week