How to create post thumbnail

IF you want to retrieve thumbnail in size that you had set with set_post_thumbnail_size() then call the_post_thumbnail() without passing any arguments.

That will default to named post-thumbnail size that that set_post_thumbnail_size() actually creates.

Also crop for this will be determined by third argument in set_post_thumbnail_size() (defaults to false) and is not tied to media settings (those control entirely different sizes of image).