'I form the light, and create darkness: I make peace, and create evil: I the Lord do all these things.
Isaiah 45:7'
There are multiple ways to understand this passage. The Lord makes peace and creates evil.
Most likely interpretation, the Lord makes peace and creates evil when it serves His greater purpose. For example, God putting it in the heart of Judas to betray Jesus. It doesn't mean that God creates all evil, that is what the Lord gave man the power for, man is really good at it too (creating evil that is).
Another possible interpretation, the Lord is the creator of all people and all things. So the Lord has created man that is evil. Therefore the Lord has created evil but is not the force behind that evil, that is the power that was given to man, who is created by the Lord and given power of free will by the Lord.