I believe the creation of the First Adam in Genesis was done in a more 'ethereal' world. In other words, the prelapsarian universe that existed was not 'fallen' and therefore not 'physical' as we understand it now. Therefore, the creation of a physical body was not even possible.
With that in mind, I will go over a few key phrases in this verse..
Genesis 2:7 - "And the LORD God formed man of the dust of the ground, and breathed into his nostrils the breath of life; and man became a living soul."
We must not assume anything. I am a firm believer in Scripture interprets Scripture. What exactly is the 'dust of the ground'? Is it dirt or clay? No. That is a false assumption. The answer is found in many places...
Genesis 3:19 In the sweat of thy face shalt thou eat bread, till thou return unto the ground; for out of it wast thou taken: for dust thou art, and unto dust shalt thou return.
When a living organism dies, it rots and eventually turns into organic matter. Some would call it 'fertilizer' and 'worm food'. Nitrogen is a good fertilizer BTW. Surely the organic matter left over contains DNA, which brings us to the next set of verses...
Genesis 13:16 And I will make thy seed as the dust of the earth: so that if a man can number the dust of the earth, then shall thy seed also be numbered.
Genesis 28:14 And thy seed shall be as the dust of the earth, and thou shalt spread abroad to the west, and to the east, and to the north, and to the south: and in thee and in thy seed shall all the families of the earth be blessed.
We can see that Scripture is associating 'dust of the earth' with 'seed'. Seed is DNA as well as the Word of God...
Luke 8:11 Now the parable is this: The seed is the word of God.
Just as Genesis teaches, a living organism returns to Nitrogen Bases where it started, i.e., the 'dust' of the earth.
In summary, God created a Genome (i.e., Soul) from the Nitrogen Bases of the ground. God did not create a physical body. That would come much later. Moreover, we discover that a Genome is what a Soul is according to the Bible.
God then breathed the First Adam's Spirit into said Genome and animated it. Now he is a Living Soul.
Soul + Spirit = Living Soul.
Again, no physical body existed yet.