After cover up, Thompson (or Watson) may create difficulty (7)
I believe the answer is:
dilemma
'difficulty' is the definition.
(thesaurus)
'after cover up thompson or watson may' is the wordplay.
I cannot quite see how this works, but
'cover' could be 'lemma' (lemma is a kind of cover) and 'lemma' is located in the answer.
The remaining letters 'di' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...
'create' acts as a link.
Can you help me to learn more?
(Other definitions for dilemma that I've seen before include "Dim male (anag.)" , "Difficult situation - may have horns" , "Shavian doctor's problem" , "Unpalatable choice" , "Difficult choice; quandary" .)