Each race knows its own story of creation.
Elves say they were created last by the gods. When the gods realized that all other races wandered over the world mindlessly, they formed beautiful, powerful and intelligent elves. A small part of their mind gave the first elves to the other races. For the Elves to teach at all, the other races needed at least some sense.
In their opinion, the gods have created only humans. All other races came into existence when humans breed with monsters and renounced true creation.
Forged in the fire of the gods, that means orc. The waste of the work of the gods landed on the garbage. Some evolved into animals, monsters or the other races.
If it goes after the dwarves, no live was in the beginning. The gods created the dwarfs to use the elements to create the world we know today. And so the dwarfs created all life, including the other races.