You are 33 sec behind another C rider and you are 35 secs ahead of a group of several C riders.
It is early in the race of 102 riders.
I would say 2 things happened.
the start is always crazy and you have to do a 250-320 wat effort for as long as possible then slip in with a group that you can hang with and recover.
The route your on has a steep climb and that has broken the groups up. Climbs are another place that you will need to try to be 250 or so.
Try racing flat races. Different trainers respond to the climbs differently. I find the flat races to be the most enjoyable because I can focus on drafting technique and energy conservation and just hold good steady power with a few increases. Usually I hope that at about 2/3 of the wat thru, if I’m rested, I can either initiate an attack or hang on with another attacking rider or 2 and we work together at 50+ watts over the group and we pull away.
The race above, your alone and on a steep hill.
You and the rider in front of you can work together and catch all the solo riders that are within 25-30 sec in front of you. They are all alone and can be caught. That will give you a couple D’s, 1 other C and an A rider.
A group of 6-8 is a fun strong ride.
Behind you, there are a couple C’s and an A rider putting out 3.5-4 W/KG and they may catch you and you need to grab their wheel if they do.
In a group with a couple A riders, you may be able to catch more of the C riders in the race.
You are all in the race together. It is only at the end do the riders get sorted and probably 1/2 the riders are not on Zwift Power anyway.