Question: Does Isaiah 45:7 suggest that God created Demons and Nephilim?
Not in my opinion!
God created angels and humans; who both have “free-will”!
An angel called “Lucifer”; challenged God, in his free-will and has a following of ⅓ of all angels created!
In Lucifer's free-will challenge, his name was changed to “Satan” (adversary); and some of his fallen angels mated with human women, and produced “Nephilim”; who had a disruptive purpose in attempting to thwart the Birth of our Lord Jesus Christ, in the fulfilment of Gen. 3:15! See (Gen. 6)!
See:
Satan's Origins; (Study)
Satan's Motivation: (Study)
Satan's Contest with God (Study)
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