Can anyone shed some light on this situation? I am not sure what happened to my little babies. Is this mold? Freeze burn? Too much water? Too little water? Is there any hope for recovery?
With what the weather has been doing lately, I would guess frost damage. Those plants don't like it cold.
They really shouldn't even be planted until the soil temperature is 70 deg., so yes you probably are seeing frost damage.
Should I dig them up and start over? Have I lost them for good?
I wouldn't dig them up. It's too soon to see exactly what is going to happen. If the tubers have started root growth, you will mess that up. However, that particular leaf is going to look like that forever. I have a feeling that when the ground warms up some more, everything will be just fine!