The issue you are having is that your Create script in the Migrations folder wants to create all the tables. When Update runs it looks at the table dbo.MigrationHistory to see which migration scripts have already run. Your database doesn't have the create in the table so Update is trying to run it.
You can either try to manually add the entry to the table or edit the create script and erase the contents of the up and down methods. Then when you run update it will run the create script, which will do nothing, and write the entry to the MigrationHistory table.