Hi there Kim&Dan, the ideal KH (carbonate hardness, not general hardness or GH) is 6 for buffering capacity. Due to your low hardness you are correct that is most likely why the pH dropped so suddenly.
You used a lot of yeast, try 1/4 or 1/2 teaspoon, this will also make your mix last longer. Your sugar quantity is ideal. Forget the baking soda, wives tale. Add it to your tank instead, 1/8 teaspoon, this will bring your buffer capacity up and pH with it. You will learn how much baking soda to add compared to CO2 over time.
The airstone isn't very efficient yes, but a lot of CO2 is still diffusing into the water as the bubbles rise. No, the bubbles don't sit on the water they pop and disperse into the air.
Assuming you have 2 tanks, sounds like quite well stocked, so the wastes of the fish bring the pH down too. You said the pH out of the tap is 7.2-7.4 but have you tested the pH in the tank a while after a water change? How often do you water change? It will gradually drop in soft water.
HTH