This is the great question that needs truthful answers. Those answers cannot be answered by refusing to acknowledge the truthfulness of the Author of all truth of words--the WORD of God. You cannot ignore the difference between His words, "created", "made", "formed", and "established". Biblical Hermeneutics demands accountability to those words. Notwithstanding the common 21st century habit of treating these four special words carelessly interchangeably is all too common in spite of Isaiah 45:18:
For thus saith the LORD that created the heavens; God himself that formed the earth and made it; he hath established it, he created it not in vain, he formed it to be inhabited: I am the LORD; and there is none else.
and, in spite of Isaiah 43:7:
Even every one that is called by my name: for I have created him for my glory, I have formed him; yea, I have made him.
For example, God uses the Hebrew word bara' (create/created) (in Chapter-One of Genesis to show that He had brought something new--never before existing in any "form"--out of nothing. Clearly, God did not "create" the fleshy bodies of man, beasts, and birds out of the dust of the ground. Rather, He uses the Hebrew word, yatsar (form/formed) their physical bodies out of the already existing dust of the ground that God, Himself, had previously "formed" on Day-Three. Moreover, God did not "create" man as a living soul, He--only after completing His forming work including His forming the nostrils of man--breathed life into those nostrils and man--only then--"became a living soul". Accordingly, God uses the Hebrew word, 'asah (make/made) to show that man was "made"--not created, not formed--a living soul.
So the OP's question is right on point. Clearly, this question requires an answer to the questions, "What did God create, what did God make, and what did God form concerning the completed mankind?
Using the KJV, Gen 1:26 reveals the "expressed" plan of God by the WORD of God, who was with God, and who was God, to accomplish the complete "making of man" in God's image and after God's likeness.
And God said, Let us make man in our image, after our likeness: and let them have dominion over the fish of the sea, and over the fowl of the air, and over the cattle, and over all the earth, and over every creeping thing that creepeth upon the earth.
However, the very next verse told us ONLY about the very first step of God's complete "making" of man, telling us ONLY about the "created" part of man.
So God created man in his own image, in the image of God created he him; male and female created he them. (My emphasis)
Does this mean that God had a flesh and blood body at that time? Clearly NO, because we see that only later--at a certain point in time--was that same Spirit WORD (who was always with God and who was God) was"made flesh"** when He was "made" the Son of God of the seed of David according to the flesh, as shown in Romans 1:3:
Concerning his Son Jesus Christ our Lord, which was made of the seed of David according to the flesh;
Clearly, Jesus Christ had a beginning as the very Son of God by being "made" of the seed of David--this day Have I begotten thee. The word, "which" (Strongs NT 3588)--not "who"--clearly indicates that this verse is speaking about the Son-ship of The Word of God. Jesus could not save mankind except that He became the Son of man. By becoming the Son of man through Mary, Fathered by the Holy Spirit of God, Jesus could stand in our place as our Savior. He could take our punishment as a Son of man for sin, and still forgive sinners as the righteous God that He is.
The WORD of God's becoming a Son of man is inseparably linked to Jesus' completion of becoming the Savior, who was always an eternal Spirit--an operational capacity and person of the duality of the Almighty Spirit God, and was additionally--at a certain point in time--made to be like the mankind that the plurality Godhead had previously created, made, and formed.
WAS ADAM AND EVE CREATED?
What about Adam? What was created in verse 27? What was Adam's likeness by reason of his specific creation? Since God was not Flesh and blood at that time, Adam's created likeness could not have been as a flesh and blood being. Moreover, Adam could not have been a living soul without the breath of life in his nostrils--nostrils that had not yet been formed. God's image at the time of Adam's "creation" was in God's own image--at that time a duality spirit consisting of more than one Spiritual Operative Capacity, which included the WORD of God who was with God, and who was God.
Well, then, Adam would have also been a plurality spirit--male and female--and God would have had to have called them, "Adam"--NOT Adam and Eve, just like the verse before (v26) where the WORD of God Himself called the plurality God, "us".
That is EXACTLY what we find in verse 27, attributable to ONLY "their created state". He did not name them Adam and Eve. He only named them "Adam" at the "creation stage" of God's complete making of Adam, as we see in Genesis 5:1-2:
This is the book of the generations of Adam. In the day that God created man, in the likeness of God made he him; Male and female created he them; and blessed them, and called their name Adam, in the day when they were created.
So Adam was "created" as a plural spirit having both male and female operational spirits--in the image of the plural-operational Spirit God.
Then, after being created a plural spirit, an earthy body was prepared for Adam, as we see in that portion of Genesis that deals with the details of "forming" of things that are of the earth, earthy--the generations of the heavens and the earth--Genesis 2:7:
And the LORD God formed man of the dust of the ground, and breathed into his nostrils the breath of life; and man became a living soul.
So first, that being named "Adam" was "created male and female" out of nothing. Then second, that male-and-female Adam was "formed" of the dust of the ground. Then third, after the male-and-female Adam's nostrils had been formed, that male-and female-Adam was "made" a living soul. BUT THERE IS MORE TO GOD's SPECIAL NARRATIVE.
While still only a male-and-female Adam, God put the male-and-female Adam in the Garden of Eden, gave him the blessing of the trees of the garden as well as the commandment concerning tree of knowledge of good and evil. And still, while still only a male-and-female-Adam, he was given the task to name all cattle, fowl of the air, and beast of the field, which he did. But there was no physical help meet for him (Gen 2:20). They had already been blessed and told to multiply, but spirits can't marry or multiply. Adam needed help--quickly. Adam was a spirit--already been created. Adam was a living soul--already a body having the breath of the living God. But there was no body prepared for a help meet for Adam. A woman was required to help old earthy Adam enjoy the blessings God had promised him.
Gen 2:21-22 provided that woman using the process of "forming" EVE. This forming process, a marvelous example of God's understanding of "GENETICS", right here in "Genesis", shows that God "made" a woman, using the created plural spirit, the formed body, and the living soul of Adam. God's brilliance and understanding enabled Him to accomplish the making of a "temporary" help meet--only until the resurrection of mankind unto eternal life, or to judgment. At that time, neither the male nor the female spirit will be bound by marriage, but rather will be each equally free to either worship God, or to receive justice for refusal to believe God.
Is it any wonder that God chose the woman to be the very help meet of God, Himself, to accomplish the preparation of the body that He (the plurality Spirit God) prepared for Himself, as in Heb 10:5?:
Wherefore when he cometh into the world, he saith, Sacrifice and offering thou wouldest not, but a body hast thou prepared me: (My emphasis)
WHAT A PLAN. WHAT A CREATOR. WHAT A MOTHER'S DAY GIFT!