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The phrase "a situation which could create" is correct and usable in written English.
You can use it when discussing potential scenarios that may lead to a particular outcome or consequence.
Example: "We need to address a situation which could create significant delays in the project timeline."
Alternatives: "a scenario that might lead to" or "a circumstance that could result in".
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Hirohito met with General MacArthur on September 27, saying to him that "[t]he peace party did not prevail until the bombing of Hiroshima created a situation which could be dramatized".
And Marion Lee Sanders, an on-call engineer from Florida, said that automated phone calls fill up voice-mail boxes, which "could create a hazardous situation, since I work in the chemical industry".
It also may help explain why the original report of a possible shortage came from the pork lobby in the U.K. rather than the U.S. Plus, grocers could have trouble increasing prices fast enough to keep pace with demand, which could create situations where supermarkets with good prices sell out of bacon, producing mini-shortages throughout the country.
Also, one might argue that a vast majority of incidents results in no harm whatsoever, which could create a false impression of over-reporting and the subsequent arguments of bureaucracy and misrepresentation of the situation.
On the other hand, Michigan faces a unique situation because of the constitutional amendment protecting pensions, which could create legal headaches down the road.
It will certainly create a volatile situation, which could be tipped into chaos by a terrorist attack on the protesters.
A face threat is a situation which threatens to create a loss of face.
Cross country surveys aimed at family physicians may be able to increase its response rates by putting more effort (and resources) into creating situations which could increase the face validity of the study [ 45].
The technical mathematical problems are amplified by the more conceptual problem of what it might mean to say that one could create a situation which forces the creation of closed timelike curves.
We have created a situation which has contributed to organised crime.
At a minimum, the situation could create compliance headaches for your company.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com