Argument.
This argument can be formulated as follows:
P1. God is omniscient, omnipotent, and morally perfect
P2. God created morally imperfect humans
P3. An omniscient, omnipotent, and morally perfect would have created morally perfect beings instead of imperfect humans.
C1. Therefore God is not omniscient, omnipotent, and morally perfect
C2. Therefore God does not exist
Regarding P2, for Latter-day Saints, God did not create man from nothing but instead organized intelligences. Marion G. Romney, of the First Presidency remarks:
Through that birth process, self-existing intelligence was organized into individual spirit beings.1
Spencer W. Kimball, then a member of the Quorum of the Twelve, also has stated:
Our spirit matter was eternal and co-existent with God, but it was organized into spirit bodies by our Heavenly Father.2
These quotes are inline with Joseph Smith’s teachings:
The intelligence of spirits had no beginning, neither will it have an end.3
In Latter-day thought, God did not “create morally imperfect humans”. God works within natural laws because some things, including intelligence, are co-eternal with God.