Hi
- I'd get them to a vet as soon as you can - this could a variety of things, including mites (which you can't see). Either way, left unchecked - those scabs could turn into a staph infection. Since they both have it, it could very well be something that is contagious. It definitely sounds like it needs medical attention.
As an aside, are your babies in a covered area outside? I only ask bc around here, we have hawks/owls and they prey on small dogs...