Why did God create us flawed and sinful, despite His ability to create us perfect, and then punish us, even though He is the Creator?

The conclusion reached in the question is invalid because it is built upon flawed premises. This can be explained in four points:

1. Disbelief and sins result from disobeying Allah’s commands and prohibitions. Allah created humans with hearing and sight, guided them to the path, and enabled them to choose. Thus, each individual bears the consequences of their actions.

2. Allah created everything with wisdom, knowledge, and perfect measure. If human intellect fails to grasp this wisdom, it is impermissible to contradict decisive evidence, for Allah knows what we do not.

3. The origin of this specious argument is the comparison of the Creator to the created, which is invalid. The Creator is not to be questioned about what He does, and to Him belongs the dominion of the heavens and the earth, doing what He wills. All His actions are wisdom, justice, and mercy.

4. The verse: (And there is none of you but will pass over it) does not mean staying in Hell or the torment of the pious. For Allah saves those who fear Him, and makes the Fire cool and peaceful for them. The Hadith: "Every son of Adam is a sinner" is true, but it does not necessarily mean that every sinner will be punished; for Allah loves those who repent and forgives those who seek His forgiveness.