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I'm not sure what traits you're looking for, but grade C animals aren't bad at all if you're focused on breeding for specific traits like seed or bloodline. When both parents share a specific trait, their offspring are guaranteed to inherit it, especially with C-tier animals.
Have you thoroughly examined your tamed animals’ traits? A high grade is meaningless without a strong underlying traits. Most people prioritize traits like Quality Meat, Seed, Bloodline, and Docile (which accelerates taming speed).
To check an animal’s traits while it’s locked, simply place it in your backpack, hover over it, and press Shift.
Most people, including myself, do this for their pristine meat and legendary-tier hides. People are willing to pay 60k-100k per legendary hide, which can be used for mod conversions, trading level 5 deviations, or other things (a side income beyond silo and monolith runs).
Take goats, for example. They have a trait called Golden Bloodline, which grants golden wool that increases weapon damage, etc, depending on the armor part you're crafting. You don't need to slaughter the goats to obtain their hides, you can simply harvest them.
Additionally, once an animal has offspring, it will have all traits unlocked and its tameness level will be around 90 or so, reducing the early-stage hassle of breeding animals.
Edit: This is the only guide I've found on Steam at the moment. There's also a spreadsheet on Reddit if you want to delve deeper into this stuff.
https://steamcommunity.com/sharedfiles/filedetails/?id=3340859316
Instead of focusing on grades, why not focus on the traits that animals have? This way, you can avoid the frustration of not getting Grade S animals and wasting significant resources, as OP mentioned. OP has 39 Grade B and C animals, which are still good if they have decent traits.