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In order to allow users to /create <name> channels, you need to specify the default category to place them in.
First, use the /categories add <category> command to set a Discord category as public.
Next, use the /category set <category> command to set the default category. When a user runs /create <name>, they will be placed in this category.
The /gui [message_url] command will create a self-updating image of all the available channels that are under public categories. Typically, server owners create a read-only standalone channel that just contains the GUI.
If you want to see a real-world example, check out what Hypnospace has set this up!
When a user wants to make a channel using the /create <name> command, the system checks if they have the Editor or Creator role. Therefore, to allow users to create their own channels, you must create one of these roles and assign it to users who are allowed to create channels.
As an administrator, there's nothing else you need to do. It's now up to the users to create their own ecosystem of community channels. To learn how to use it, check the User Guide. For a full list of commands, check out the Commands section.