If the federal government didn’t own the land to begin with then how did they get the authority to create Utah?
I am contending they no longer own it precisely BECAUSE it was part of the Territory of Utah, and was admitted to the Union as a State. As part of becoming a state, the entire territory went from being federally owned to being state owned (or at any rate it SHOULD have).
PS - The federal government did not “create” the state of Utah. They lack the power to “create” states.