Did Jesus create birds?
Not according to this verse:
Surely those on whom you call upon instead of Allah cannot create even a fly, though they should all combine together for the purpose. And if the fly should snatch away anything from them, they cannot recover it therefrom. Weak, indeed, are both the seeker and the sought. (22:74)
It says that it is not in the power of false gods to create a creature as insignificant as a fly. If the ability to create a fly confers godhead, creation of a bird would undoubtedly do the same, even more so, since a bird is a higher order creature than a fly. Some Muslims, misunderstanding the metaphorical expression used in 3:50, believe that Jesus as created birds. This verse strikes at the heart of that notion and completely discounts the possibility. Among all those who are “called upon instead of Allah”, Jesus occupies a position of distinction. He has without doubt the highest number of followers. If it is accepted that he could create, with or without God's permission, living birds of flesh and blood, then the argument of 22:74 is defeated in its first and most important test case.
In defense of literal interpretation of 3:50, it is argued that Jesus could create birds and could also bring dead people back to life only with the permission of Allah. And since to permit remains Allah's prerogative, hence there is no problem and Unity of Godhead remains intact. This line of reasoning, unfortunately, weakens the argument in the verse above. On the one hand we are told that only Allah creates life. It distinguishes Him from His creation and is a power He is loathe to share with anyone else. But on the other, we are told of certain people, admittedly pious, who have been granted this ability. Whether such people were pious or wicked, prophet or non-prophet, it makes no difference. If true, such delegation of ability to create life by God to any of His creation would entirely compromise the Unity of Godhead. What conclusion is a neutral observer to draw from this? There can be only one: that there are more than one entities which create life. By delegating His ability to create life, God would stand accused of thoroughly confusing the issue and making the matter of finding the One True God impossibly difficult for the seeker of truth. How is to be ascertained which of the ancients created life with Allah's leave and which created without it? In this circumstance there would be no justification in condemning those who associate partners with Allah.
Then again, whatever happened to the birds created by Jesus? Such birds must have reproduced and spread. Which would lead us to believe there are two types of birds in the world: ones created by Allah and others created by Jesus. More likely these two types have intermixed such that it is impossible to say with certainty if a particular bird is wholly created by Allah, by Jesus or by both together.
If this is not shirk, what is?
Meaning of Birds in the Quran
There is no contradiction in the Holy Quran. The term 'birds' is a metaphor for people who attain great spiritual heights. See the following:
Seest thou not that it is Allah Whose praises, all who are in the heavens and the earth celebrate, and so do the birds with their wings outspread? (24:42)
Regular birds along with the rest of God's creation, animate and inanimate are accounted for in all who are in the heavens and the earth. The birds with their wings outspread has to be the most noble of all creation that praise Allah, which can be none other than the spiritual man, worthy of a special and honored mention.