In order to create defects for any failed test case steps/test cases during execution :

1. Go to 'Test Suite' Module → Open a Test suite which needs execution
2. Under the 'Test execution' tab at the bottom of the Test suite details screen → Click on 'Execute' icon under the 'Action' column
3. The execution screen of a test-suite will get opened → Click on 'Defect' icon from execution screen → An 'Issues' screen pop window will get opened. 
   
   

Here, there are three tabs on issues screen,

• Available Issue(s): The tab shows issues created under the Jira integrated project and is not linked to any test cases. The defect can be linked at test case level or step level.
• Linked Issue(s): The tab shows issues that are linked with the test case while execution.
• Create Issue: User can log a defect from directly from this screen. You just need to select the Jira instance and its integrated Jira project. QMetry will auto-populate the issue summary, Jira fields along with step details. Upon clicking on Create and Link button new issue will get created in Jira and directly get linked with test case/test step. You can verify linked issue under Linked Issues tab.