God did not create moral evil (sin).
When God completed His creation of everything evil was not part of what He created as He said that all things were good. And God saw every thing that he had made, and, behold, it was very good. And the evening and the morning were the sixth day. Genesis 1:31 The knowledge of evil existed as it is essentially the opposite of what good is but moral evil or sin did not exist. And out of the ground made the Lord God to grow every tree that is pleasant to the sight, and good for food; the tree of life also in the midst of the garden, and the tree of knowledge of good and evil.  And the Lord God commanded the man, saying, Of every tree of the garden thou mayest freely eat:  But of the tree of the knowledge of good and evil, thou shalt not eat of it: for in the day that thou eatest thereof thou shalt surely die. Genesis 2:9,16-17 Moral Evil is abstract in nature and it is whatever is in opposition to God's laws and His character. Evil in this since is sin. The angels were the first to sin but that was of their own freewill. This evil was produced from the choices of created beings. Man was the next to produce evil or sin. It was man's sin that brought death into creation. Moral evil or sin as well as death were not created by God but instead they are the results of freewill choices. There are other uses of "evil" within scriptures that are not moral in a sense but have negative consequences such as harm, catastrophes and harsh punishment, etc. Israel was all too familiar with the punishment type of evil for sure. In no way is this evil in a sinful sense and yes God did create these sorts of evil but He is not responsible for the moral evils (sin) that men produce. If God was responsible for moral evils (sin) then it would be pure evil (sin) to hold men accountable for evil (sin) that they ultimately were not responsible for in the first place. So the evil that Isaiah referred to that God created was not moral evil (sinful). I form the light, and create darkness: I make peace, and create evil: I the Lord do all these things. Isaiah 45:7 Evil...רַע...Transliteration ra`... Strong’s Definitions רַע raʻ, rah; from H7489; bad or (as noun) evil (natural or moral):—adversity, affliction, bad, calamity, displease(-ure), distress, evil((-favouredness), man, thing), + exceedingly, × great, grief(-vous), harm, heavy, hurt(-ful), ill (favoured), + mark, mischief(-vous), misery, naught(-ty), noisome, + not please, sad(-ly), sore, sorrow, trouble, vex, wicked(-ly, -ness, one), worse(-st), wretchedness, wrong. (Including feminine raaah; as adjective or noun.) Webster's 1828 definitions: E'VIL, adjective e'vl. [Heb. to be unjust or injurious, to defraud.] 1. Having bad qualities of a natural kind; mischievous; having qualities which tend to injury, or to produce mischief. Some evil beast hath devoured him. Genesis 37:20. 2. Having bad qualities of a moral kind; wicked; corrupt; perverse; wrong; as evilthoughts; evil deeds; evil speaking; an evilgeneration. 3. Unfortunate; unhappy; producing sorrow, distress, injury or calamity; as eviltidings; evil arrows; evil days. E'VIL, noun evil is natural or moral. Natural evil is any thing which produces pain, distress, loss or calamity, or which in any way disturbs the peace, impairs the happiness, or destroys the perfection of natural beings. Moral evil is any deviation of a moral agent from the rules of conduct prescribed to him by God, or by legitimate human authority; or it is any violation of the plain principles of justice and rectitude. There are also evils called civil, which affect injuriously the peace or prosperity of a city or state; and political evils, which injure a nation, in its public capacity. All wickedness, all crimes, all violations of law and right are moral evils. Diseases are natural evils, but they often proceed from moral evils. 2. Misfortune; mischief; injury. There shall no evil befall thee. Psalms 91:10. A prudent man foreseeth the evil and hideth himself. Proverbs 22:3. 3. Depravity; corruption of heart, or disposition to commit wickedness; malignity. The heart of the sons of men is full of evilEcclesiastes 9:3. 4. Malady; as the king's evil or scrophula. E'VIL, adverb [generally contracted to ill.] 1. Not well; not with justice or propriety; unsuitable. Evil it beseems thee. 2. Not virtuously; not innocently. 3. Not happily; unfortunately. It went evil with his house. 4. Injuriously; not kindly. The Egyptians evil entreated us, and afflicted us. In composition, evil denoting something bad or wrong, is often contracted to ill. The Bible clearly states that the soul that sins dies because the wages earned from sin is death. This means that it is through men's choices that moral evils or sins are produced and it's by these sins that men are held accountable for and the penalty is eternal death. Behold, all souls are mine; as the soul of the father, so also the soul of the son is mine: the soul that sinneth, it shall die.  The soul that sinneth, it shall die. The son shall not bear the iniquity of the father, neither shall the father bear the iniquity of the son: the righteousness of the righteous shall be upon him, and the wickedness of the wicked shall be upon him. Ezekiel 18:4,20 For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord. Romans 6:23