Evolution of vertebrates was accompanied by a gradual increase in oxygen availability, from the irrespirable atmosphere of the Precambrian to a PO₂ at 7 mmHg with the first vertebrates (agnaths), to the present sea level PO₂ value of 160 mmHg with the first reptiles.
Source: wiktionary
The gnathostomes almost entirely replaced the agnaths, presumably because they were more effective fishes.
Source: wiktionary
Thus, although tunicates are presumably intermediate between flatworms and agnaths, the larval tunicate more closely resembles the flatworm and adult agnath.
Source: wiktionary