When God refers to creating evil in that verse it is certainly not meant as 'sin' but clearly as natural evil and punishment of those God chooses. Since no one is innocent, there is no question of innocents suffering.
A good example of proper exegesis of this verse is given by John Calvin (granted, he was thoroughly Augustinian, but clearly NOT a Catholic theologian) in his commentary on Isaiah. Specifically on this verse he writes:
"Making peace, and creating evil. By the words “light” and “darkness” he describes metaphorically not only peace and war; but adverse and prosperous events of any kind; and he extends the word peace, according to the custom of Hebrew writers, to all success and prosperity. This is made abundantly clear by the contrast; for he contrasts “peace” not only with war, but with adverse events of every sort. Fanatics torture this word evil, as if God were the author of evil, that is, of sin; but it is very obvious how ridiculously they abuse this passage of the Prophet. This is sufficiently explained by the contrast, the parts of which must agree with each other; for he contrasts “peace” with “evil,” that is, with afflictions, wars, and other adverse occurrences. If he contrasted “righteousness” with “evil,” there would be some plausibility in their reasonings, but this is a manifest contrast of things that are opposite to each other. Consequently, we ought not to reject the ordinary distinction, that God is the author of the “evil” of punishment, but not of the “evil” of guilt."
One of the difficulties we have to face is the question of how to interpret Scripture. Scripture needs interpretation, and the idea that one can just read a verse at random or interpret the "plain" words generally leads to great distortions. This verse is an excellent case in point.



as per Isaiah 45:7.



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