-->
I.e., "He has created all human beings with full knowledge of their natural differentiation and the disparity in their respective conditions" (Razi) - and this, of course, includes their failings and errors. (Cf. 7:199 - "Make due allowance for man's nature" - and the corresponding note [162].)
Khallaq: the emphatic intensive form, as meaning the Creator, Who is perfect in His skill and knowledge, and Whose creation answers perfectly to His design. Therefore no one should think that anything has gone wrong in Allah's creation. What may seem out of joint is merely the result of our short-sighted standards. It often happens that what appears to us to be evil or imperfect or unjust is a reflection of our own imperfect minds. See the next two verses and notes.