An all-powerful god who creates subjects that are capable of failing a test of his own devising, even though he totally could make everyone adequate if he so chose, such a god is an evil sadist.
It'd be like making up rules for what constitutes an evil pixel in Conway's game of life and punishing those pixels for their transgressions. You controlled every parameter. Those pixels failed the test because you set them up for preordained failure.
The only way to square this away is to assume that god isn't unwilling to intervene, but is unable to.