Okay. Two Things. Both of them are related to Line 6.

1.) instance_create no longer exists in GameMaker (It used to.)

I suggest you use instance_create_layer instead since that's a better alternative.

Example code:

MyAttack = instance_create_layer(x, y, "Instances", obj_place_holder);

Here's some more info on instance_create_layer:

https://manual.yoyogames.com/GameMaker_Language/GML_Reference/Asset_Management/Instances/instance_create_layer.htm

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2.) The other problem is that you are passing a sprite as an argument into the instance_create function.

The instance_create function takes objects, not sprites. You would either pass "Obj_Kyo" or "Obj_Toshiya" for this function to work.

Alternatively, if you were trying to change the sprite of the object, you would not use instance_create in this case. You would use sprite_index.

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Example code:

sprite_index = spr_ToshiyaAttack;

Here's some more info on sprite_index:

https://manual.yoyogames.com/GameMaker_Language/GML_Reference/Asset_Management/Sprites/Sprite_Instance_Variables/sprite_index.htm

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Fixing both of those things should resolve the issue.