﴿ ٱلَّذِىٓ أَحْسَنَ كُلَّ شَىْءٍ خَلَقَهُۥ ۖ وَبَدَأَ خَلْقَ ٱلْإِنسَٰنِ مِن طِينٍۢ ﴾

“who makes most excellent everything that He creates. Thus, He begins the creation of man out of clay;”

Who perfected everything that He created read khalaqahu as a past tense functioning as an adjectival qualification of what He perfected; or khalqahu ‘its creation’ as an inclusive substitution for kulla shay’in ‘everything’. And He began the creation of man Adam from clay