I just did reporting yesterday as we are approaching spring in Southern California. After clearing the soil from the training pot, I realized the tree was a little too small for this pot. Is this acceptable in the art of bonsai?

This is just a very young plant that needs years of growing. The pot is not too small it is as a final pot too big, but that is years away. For now it is fine to allow it to grow up. If it was mine I would remove the two lower branches and also the one that is pointing down on the right that is on the inside of the bend, if left it will cause the trunk to swell there and create inverse taper

I would not waste such a nice pot on such a young tree.

You are asking the wrong question. The right question should be about development of the tree.