Jagat is adhyasa, so is ishvara

 Jagat and ishvara are adhyasa

Atma itself appears as jagat and ishvara

This is due to past samskara

There was a past appearance of atma as jagat and ishvara, and this past appearance alongside ajnana is the cause for adhyasa to happen

So there is no 'production' of jagat, or of adhyasa, adhyasa is beginingless

This beginingless mistake is corrected via jnanam

Now I know that I am brahman, I appear as all this and as ishvara due to past appearances that are again due to past appearances begininglessly

The point is the reason has no beginning

But it has an end, because once I see it as an endless past of appearances, I am able to accept it as an appearance and hence negate it as nothing but I. Hence I can claim myself as adhistana, and that is also from standpoint of ajnana and appearance, on my own I am not adhistana also.

I am free independent I that is non dual

Such a non dual I , I am.