Roots have grown out of pot and into wicking fabric, how to proceed?

So this year I tried growing my seedlings in bottom watered containers. They included slits on the side for air pruning, which worked well, but i didnt consider roots growing downward and through the moisture absorbing fabric to get to the water reservoir.

How would you proceed before putting ghese into the ground?

Option 1: cut the roots where they exit the cell so each seedling can be separated from the fabric.

Option 2: cut the fabric into individual sauares and put it into the ground with the seedlings, thus preserving the roots.

If it makes any difference the seedlings got quite tall and i plan to remove most foliage and plant deep so i expect plenty of roots to form either way.

Thanks for any insight!