न च मत्स्थानि भूतानि पश्य मे योगमैश्वरम्।भूतभृन्न च भूतस्थो ममात्मा भूतभावनः॥
na ca mat-sthāni bhūtāni paśya me yogam aiśwarambhūta-bhṛn na ca bhūta-stho mamātmā bhūta-bhāvanaḥ
Word by word
The verse says
And beings do not rest in me. Look at the power of my joining. Holding beings up and not standing in them, my very self is what brings beings into being.
In plain words
He has just said all beings rest in him. Now he says they do not.
This is not a slip and it is not a riddle to be solved.
Paśya me yogam aiśwaram — look at my divine joining. He is pointing at the contradiction rather than hiding it.
Where you've felt this · in creative work
Your brother tells a joke at a table of six people and everybody laughs. It is in the room now. It is in each person who heard it. If you went looking for where the joke actually is, you would come back with nothing. Open anybody up and it will not be in there. It is entirely real and it has no address.
Going deeper
Two flat contradictions, one after the other, and neither is withdrawn.
Everything rests in him; nothing rests in him. He holds all beings; he does not stand in them. The commentarial traditions handle this differently and the differences run deep — some read the second statement as cancelling any spatial sense in the first, others as marking his freedom from what he supports. None of them makes the tension go away, and it is better not to pretend one does.
What the verse itself does is interesting. It does not resolve anything. It says look.
That is worth taking as an instruction rather than a failure. Some relationships will not go into the language of in and out — you have a few in your own life that cannot be diagrammed either. Being unable to draw it is not the same as not understanding it.