Had medical issues my first semester and not happy with my grades. Took the second semester off on a medical leave. Would like to transfer to another school. Must I transfer grades
Yes, you must transfer grades
There is a college clearinghouse that would have transcript records for all colleges attended. No way to start over but since it is only one semester, you have plenty of time to show improvement.
Did you apply for a medical withdrawal? If not, do you still have that option?
Talk to the college about a retro-active medical withdrawal (assuming you were diagnosed with something by a doctor).
You do not “transfer grades”. You must submit official copies of your transcript when you apply as a transfer student. Once admitted, the place that you end up attending will determine for itself whether to award you any credit and if so, whether to record your old grades on your new transcript.