Asalamalikum So I asked the question to a learned muslim as his answer was “I don’t know” so here I came
Prophet (SAWW) said: “Souls are like crowds which gather together. The ones who met before get on well. The ones, who did not meet before, cannot get on very well and separate.” (Bukhari, Anbiya, 2; Muslim, Birr, 159; Abu Dawud, Adab, 19).
This hadith states that people met somewhere before they came to world. Clearly, as it cannot have happened in mothers’ wombs, it means they indeed existed before and were created before they came into mothers’ wombs. Hence meaning, Allah doesn't create a new soul everytime.