Lanolin creates flaw - too bad (7)

I believe the answer is:

woolfat

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'lanolin' is the definition.
I don't know anything about this answer so I cannot judge whether it can be defined by this definition.

'flaw too bad' is the wordplay.
'bad' is an anagram indicator.
'flaw'+'too'='flawtoo'
'flawtoo' with letters rearranged gives 'WOOLFAT'.

'creates' acts as a link.

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I've seen this clue in The Daily Express.

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