Allah, The Most Merciful, The Most Compassionate created us to shower on us His Mercy. Allah does need us and never gets any benefit from our worshiping Him. The benefits are for us only. Allah says in Quran: Except those on whom Your Lord Has bestowed His Mercy, and for that He did create them.(Sura 11, Verse 119).
Some people say it is because Allah had created the jinn first, and the angels had seen the jinn fighting so knew that a new species with free will would also fight.
Some say that there were other humanoids (nasnas), and they had fought, and so they deduced from this that a new species with free will would also fight.
These two views are reinforced by a narration from Imam al-Sadiq (A) in which he says that the angels could not have known that humans would cause bloodshed if they hadn't seen the precedent of earlier creatures on earth.
Some simply say that they understood this from looking at human nature, or by looking at the nature of life on earth and the challenges of living as an earth-based being (for instance, competition for food, water, reproduction, and land).
Since the earth (dunya) is considered the basest or lowest level of creation, vis-a-vis the heavenly realms, perhaps it also didn't make sense to instill Allah's vicegerency in an earthling.
Maybe there are other reasons too which relate to the nature of the angels and their existence outside of the earthly realm which would give them access to knowledge or a perspective that human beings generally lack.
Allah, The Glorious Has created us to bestow on us His Mercy. He never needs anything and did not create the creatures for any need by Him but He created us and all the creatures to shower on us His Mercy. We read in Quran (Except those on whom your Lord has bestowed His Mercy, and for that (Mercy) He created them). Sura 11, verse 119.
The most valuable thing for us and for every human being is our life. That is why people sacrifice everything they have for the sake of saving their life. This life is a gift from Allah out of His Mercy on us.
The idea that every human being is created with its own associated jinn, called a qareen or hamzaad, is mentioned in Sunni hadith. This jinn is usually considered to be an inherently satanic spirit, and its job is to misguide people (except for the Prophet (S), who is said to have tamed and converted his). In the Sunni tradition, this idea is typically taken as an interpretation of Qur'an 43:36.
To my knowledge, there are no hadith through Shi'i chains which speak of the qareen. (These hadith appear in Bihar al-Anwar, but they are the Sunni hadith, not separate Shi'i hadith.) Ayatollah Nasser Makarem Shirazi dismisses the idea of the qareen as superstition.
This is not to say that no single Shi'i person accepts the idea of the qareen, as some Shi'is may embrace these hadith. However, it isn't considered a fundamental belief or requirement in Shi'ism to believe that people have a qareen or to interpret that Qur'anic verse as speaking of a qareen.
As with most matters of the unseen world, God knows best.
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