I am trying to find the solution to the following equation, $\epsilon x^3 -x^2 +x-\epsilon^{\frac{1}{2}}=0$, for the first two non-zero solutions as $\epsilon \to 0^+$.
I have used the principal of dominant balance (by a Kruskal Newton Graph) to find that my ansatz should be of the form $x(\epsilon)=\dfrac{z(\epsilon)}{\epsilon^\alpha}$ where $\alpha=0,\dfrac{1}{2},1$.
Now if we substitute these into our equation we get, for each $\alpha$:
$\alpha=0 : \ \epsilon x^3 -x^2 +x-\epsilon^{\frac{1}{2}}=0 $ - noting $x=z$;
$\alpha=\dfrac{1}{2}: z\epsilon^{\frac{1}{2}}-z^2+z\epsilon^\frac{1}{2}-\epsilon^\frac{3}{2}$;
$\alpha=1: \ z^3-z^2+z\epsilon-\epsilon^\frac{1}{2}$.
Now it is clear that if we perturb our equations in the form $z(\epsilon)=z_0+\epsilon z_1 +...$ then we have, for $\alpha=0 \ \& \ 1$, an $\epsilon^\frac{1}{2}$ term which can only be equated to zero. Does this mean that we do not have a valid solution for these choices of $\alpha$?
Whereas, if we consider $\alpha=\dfrac{1}{2}$ then we have an equation of the form: $(z_0+\epsilon z_1)^3\epsilon^\frac{1}{2} -(z_0+\epsilon z_1)^2 +(z_0+\epsilon z_1)\epsilon^\frac{1}{2}-\epsilon^\frac{3}{2}=0$ whose coefficients can all be equated, thus valid solutions.
As a result is the only case where we can find solutions at $\alpha=\dfrac{1}{2}$?

Your original equation is $$\epsilon x^3 -x^2 +x-\epsilon^{\frac{1}{2}}=0. \tag1$$ To simplify a bit we define $\, \delta := \sqrt{\epsilon}.\,$ The equation now becomes $$ \delta^2 x^3 - x^2 + x - \delta = 0. \tag2$$
For any $\, \delta \ne 0, \,$ there are three rots of the cubic. If we try a small value for $\, \delta, \,$ such as $\, \delta = 0.01, \,$ the three roots are easily determined to be approximately $$ x_1 \approx \delta + \delta^2, \quad x_2 \approx 1 - \delta, \quad x_3 \approx \delta^{-2} - 1. \tag3$$
It is now easy to find further terms of the Puiseux series expansions. Note that for any $\, \epsilon>0, \,$ there are two values for its square root $\, \delta,\,$ and this gives six roots of equation $\,(1)\,$ since its roots in terms of $\, \delta \,$ are different if we take the negative square root.
You may be interested in ways to increase precision of approximations to the roots. For example, for the root $\,x_1,\,$ the function $\, f_1(t) := \delta + t^2 - \delta^2t^3 \,$ has $\,x_1\,$ as a fixed point. Using iteration we get the sequence of approximations to $\,x_1\,$ as follows: $$ \delta + O(\delta^2) \, \mapsto \, \delta + \delta^2 + O(\delta^3) \, \mapsto \, \delta + \delta^2 + 2\delta^3 + O(\delta^4) \, \dots. $$
Similarly, for the root $\,x_2,\,$ the function $\, f_2(t) := (1+\sqrt{1 - 4\delta + 4\delta^2 t^3})/2 \,$ has $\,x_2\,$ as a fixed point. Using iteration we get the sequence of approximations to $\,x_2\,$ as follows: $$ 1 + O(\delta) \, \mapsto \, 1 - \delta + O(\delta^3) \, \mapsto \, 1 - \delta - 3 \delta^3 - 3\delta^4 + O(\delta^5) \, \dots.$$
The remaining root $\, x_3 = \delta^{-2} - x_1 - x_2 = \delta^{-2} - 1 - \delta^2 + \delta^3 - 2\delta^4 + O(\delta^5). \,$