Why did Allah create Adam to place him on Earth, then house him in Paradise instead, and why did He punish him even though Iblis entered Paradise, showed arrogance, and tempted Adam and Eve, who were new to life?

There is no contradiction between the verses of the Book; what appears to be a contradiction stems from the limited understanding of the observer. Understanding the Quran requires knowledge of the language and the methodology of the Salaf in interpretation. Allah is All-Wise, and His actions and words are far removed from futility. Whoever finds the wisdom obscure should seek it from the people of knowledge.

Allah did not state that Adam would descend to Earth immediately after his creation; rather, He informed that Adam would be His vicegerent on Earth, and that indeed occurred. The wisdom behind Adam entering Paradise and then descending was to reveal the truth about Iblis as an enemy to humanity, to show the honor of the obedient and the disgrace of the disobedient, and to unveil the weak nature of humankind.

Iblis's entry into Paradise was not contradictory to Allah's decree that disbelievers would not enter it, because Iblis's entry was at the beginning of creation, while Allah's decree concerning disbelievers is on the Day of Judgment. Furthermore, Allah does as He wills with His creation. The punishment of Adam and Eve and their separation in location are unsubstantiated Israeiliyat (Jewish traditions). If they were proven, the wisdom behind them would be to demonstrate that life is built upon struggle.