The filter will take care of the cloudiness and it shouldn't harm the fish.Was that 4 gallons from a water change or top off from evaporation? Seems like an awful lot of water. What I try to do when pouring in alot of water is to pour it over the rocks to kinda buffer the sandstorm you got.
Any reason why you went with fish to cycle? It's usually a lot less work and faster to go without fish.
You may also wanna rethink those damsels, if you manage to keep them alive through a cycle they are mean little fish, they tend to take over a whole tank. lol