Gods Foreknowledge
The difference is, we’re not creators, if I create something that I know will do evil by definition it’s pre determined and that entity only has the illusion of free will.
Good, you have at last revealed the root issue of your question. But to say is there is ‘no reason or sense’ is a conclusion too soon and one should take a step back and ponder over what God Himself has spoken. God did not create this test to satisfy His own knowledge. According to Him, this test exists for us . He has no need for it but we do. Allah wanted everyone to show their deeds and then present this evidence to us. Then based on this evidence He will decide who will go to Paradise and who will go to Hell. It is well known, especially in Qur’an, that people who will go to Hell are the one who will argue with Allah but since He chosen to make judgment based on evidence, all people on Day of Judgment will have no excuses when they know what they have done by their own hands rather than God simply telling them what they will do based on His knowledge. This world exists to collect evidence, not for God to figure out what we will do, but to collect evidence for Day of Judgment. Allah does this because He is Just. You may argue “He doesn’t have a reason to be just”, No, He doesn’t, but He choose to be, so here we are. But let me go deeper in your actual issue, you are confused because you can’t fathom a Being that has no needs. Of course it is difficult to understand as a creation that can only think and function inside their needs and never beyond. Your main problem is that “Why would God do anything, what reason does He have when He has no needs” Truth is, that is the difference between God and creation. God doesn’t require ‘needs’ to do anything, we do. And why would He has ‘needs’ and ‘reasons’ similar to us? We came after Him, He was before us, He is not based on us nor ‘function’ like us, there is no reason for this assumption, a speculation. God is the Ultimate Being, the Truth, the real Reason. He introduces Himself as “Al-Qayyum”, you know what that means? It means He exists because He exists, He does whatever He want because He can, He is who is He is. Purely independent, what He wants becomes the truth, it becomes the reason behind everything. He defines logic, He defines morality, He defines intelligence yet He is not forcefully bound by any of them, only what He desires. You are a creation, even if you move an inch, Allah can demand reason for it because we have ‘needs’, we need ‘reasons’, ever answerable to God but He isn’t (see Qur’an 21:23). But He can do what He wish and no one can demand a reason for it. Man gets ahead of himself when Allah reveals a little about Him and he start making assumptions, tries to make judgments about what God should or should not do but that is a fruitless thing people engage in, it’s not place for creation do that (see Qur’an 36:77). It is God who decides the ‘shoulds’, it is God who decides the ‘reason’. God decides, creation bows.