Most of what I heard about this error "failed to create transaction" is due to small inputs or there are many small transaction from the wallet(Mostly earn from faucet sites).
They mostly called it "dust transactions" so if you have these many small transactions from your wallet the fee its more costly than the amount you want to send.
Read this some post from other people out there.
I've been reading if you have a load of mini transactions you can end up with this error, rendering your wallet useless.
and this
Is your wallet made up up of many, many small amounts? Have you visited any sites giving small amounts of Bitcoin away for "free"? If so, your client is coughing up on the fact that all the small transactions are costing more than the fee they incur to spend.
So I think the only solution for this is to consolidate all dust transactions and manually make a raw transaction with 1 sat/byte fee. I think this is not the right time to do this because there is a big spike on the mempool recently(due to Bitcoin demand) maybe wait a bit if the mempool size is drop and back to normal.