1st Gen Need help to build team for Stadium

Despite the team building, I thought this is the more appropriate place rather than Competitive Pokemon as I'm not competing against other players, only the coms in Pokemon Stadium.

So I've started Red, Blue and Yellow fresh and built a team for Pika Cup. However, I cannot get past halfway. Should I try again, or build a new team (and this time, at a later point when I have access to better moves)? Or maybe it just need a slight modification.

For reference, this is the team I'm using:

Charmeleon Lv. 17
- Ember
- Growl
- Scratch
- Leer

Wartortle Lv. 17
- Mega Punch
- Tail Whip
- Bubble
- Water Gun
Note: I've got TM01, so I thought it would be better than Tackle.

Pikachu Lv.16
- Thundershock
- Growl
- Quick Attack
- Thunderwave

Butterfree Lv.16
- Confusion
- Poisonpowder
- Stun Spore
- Tackle
Note: I've replaced String Shot with Stun Spore as I thought paralysis support would be better than speed drop.

Mankey Lv.16
- Low Kick
- Leer
- Scratch
- Karate Chop

Nidoking Lv.16
- Horn Attack
- Leer
- Double Kick
- Water Gun
Note: I got TM12, so I replaced Tackle with it.

The furthest I'm at is around Mt. Moon.

Does the game scale your Pokemon's levels down to the level cap if they exceed it, or does it bar them from participating entirely if they do?

If it's the former, then trying again after the party's evolved and has better movesets would probably help a lot.

Scaling the levels down isn't the thing until Diamond and Pearl's Battle Tower. That said, I've checked what I'm up against and have found that I'm simply outpowered by the later rounds, so I'll just keep my Nidoking and find better mons.

This is what I imagined by new team to be (WIP):

Nidoking Lv.16
- Earthquake / Dig (TM)
- Surf (HM)
- Thunderbolt (TM)
- Double Kick (Level-up)

Alakazam Lv.16
- Psychic (TM)
- Thunderwave (TM)
- Light Screen (TM)
-
Psychic for STAB, T-wave for PAR support and Light Screen Need help on forth moveslot, though.

Raichu Lv.16
- Thunder / Thunderbolt (TM)
- Growl (Level-up)
- Thunderwave (Level-up)
- Quick Attack (Level-up)

Lapras Lv.16
- Surf (HM)
- Sing (Level-up)
- Ice Beam / Blizzard (TM)
- Thunderbolt (TM)

Arcanine Lv.17
- Bite (Level-up) / Swift / Body Slam (TM)
- Reflect (TM)
- Fire Blast (TM)
- Dragon Rage (TM)
The fastest Dragon Rage user I could find without trades. Ideally, I'll want to give it Body Slam, but I'm distributing one-time TMs throughout all the teams I'm using.

Starmie Lv.17
-Surf (HM)
-Ice Beam (TM)
-Thunderbolt (TM)
-Psychic (TM)

Total TMs used
One-time
EQ/Dig x1 total, Psychic x2, Thunderwave x1, Seismic Toss x1, Swift/Body Slam x1 total

Reusable
Thunder(bolt) x4 total, Light Screen x1, Ice Beam/Blizzard x2 total, Reflect x1, Fire Blast x1, Dragon Rage x1
* Note: Thunderbolt, Thunder, Ice Beam, Blizzard and Fire Blast are considered reusable as I can trade to Crystal.

Tradebacks from Crystal

Alakazam
- Psychic
- Thunderwave
- Thunderpunch
- Fire Punch
Now, this is my more ideal set, with T/F-punches for better coverage.

Aerodactyl Lv 17
- Dragon Rage
- Fly
The fastest Dragon Rage user.

Flareon
- Quick Attack
- Fire Blast / Flamethrower
The most powerful Quick Attack to ever be used.

In the mean time, I'd also want to plan for Petit Cup:

Staryu Lv.27
- Surf (HM)
- Ice Beam (TM)
- Thunderbolt (TM)
- Recover (Level-up)

Bulbasaur Lv.27
- Growl (Level-up)
- Razor Leaf (Level-up)
- Leech Seed (Level-up)
- Toxic (TM)

Gastly Lv.26
- Night Shade (Level-up)
- Psychic (TM)
- Confuse Ray (Level-up)
- Mega Drain (TM)

Pikachu Lv.26
- Thunderbolt (Level-up)
- Growl (Level-up)
- Quick Attack (Level-up)
- Thunderwave (Level-up)

Geodude Lv.26
- Rock Slide (TM)
- Earthquake / Dig (TM)
- Strength (HM) / Body Slam (TM)
- Selfdestruct (Level-up) / Explosion (TM)

Farfetch'd Lv.27
- Leer (Level-up)
- Swords Dance (Level-up)
- Body Slam (TM)
- Fly (HM)

Total TMs used
One-time
Toxic x1, Psychic x1, Mega Drain x1, Rock Slide/Dig x1, Body Slam x2, Explosion x1

Reusable
Ice Beam x1, Thunderbolt x1,

Here is an update, showing how well my team fares:



I've learnt too late that Staryu is not allowed, but I managed to find a substitute.