Review of PCB design: ESP32 + 2 Relay design review
Unfortunately, you have a couple major design issues here that will prevent this board from working.

The relays you are using AZ21501-A cannot have their coils driven by AC.  Their data sheet very clearly states that they are DC coils to 120 VDC.  If you put 120VAC through their coils, the contacts will simply chatter rapidly instead of staying closed.  Relays with AC coils have a shading ring added which is necessary for their operation on AC.  Shading rings are effectively a single, shorted turn (or sometimes several turns).  The primary magnetic flux from the relay coil induces current in the shading ring, resulting in an auxiliary magnetic flux 90° out of phase with the main flux.  This prevents the magnetic field from dropping to 0 during the zero-crossing periods of the AC current through the coil.  DC coils do not have a shading ring, and every time the current reverses direction (crosses zero), the magnetic field will be collapsed entirely, opening the contacts.  This results in the relay chattering rapidly.
This kills the relay.
You will need to change your relays to ones intended to have their coils driven from AC, the ones you have chosen will not work.

Get rid of those MOVs.  MOVs wear out and are not designed nor intended for use in repetitive transients like those of a relay coil.  They are meant to stop unexpected surges that occur far more infrequently.  MOVs also tend to have spectacular (as in, with fire or smoke) failure modes, especially when used in a clamping configuration.  They also serve no purpose when used with a correct coil type (remember that shading ring? Any collapsing magnetic field has a nice shorted turn to induce current in, back emf will be negligible).  What you DO need is an RC snubber across the relay coil to dissipate extra energy instead of letting it oscillate between the coil and shading ring.  Try a 39Ω resistor in series with a 10nF capacitor across each of the relay coils.