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No, Congress has no authority under the US Constitution to create a State from a district. Article I would need to be amended, and the 23rd Amendment would need to be repealed for legislative efforts to be constitutional and the D.C. Circuit Court of Appeals in Adams v Clinton in 2000 ruled this way.
Also a new State can't be created out of an existing State, meaning You can't "shrink the size" of DC without it reverting back to Maryland and Maryland deciding the issue and not the Federal Government. Article IV, Section 3 of the Constitution:
“New States may be admitted by the Congress into this Union; but no new State shall be formed or erected within the Jurisdiction of any other State; nor any State be formed by the Junction of two or more States, or Parts of States, without the Consent of the Legislatures of the States concerned as well as of the Congress.The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States; and nothing in this Constitution shall be so construed as to Prejudice any Claims of the United States, or of any particular State.”
DC is a district. Congress only has the ability to make States out of territories. Alaska and Hawaii were territories and were for almost 100 years before they became States.
Congress has the power to shrink the size of DC and as you stated in your post it cannot shrink DC and admit it into Maryland without the consent of the Maryland state legislature. However under the constitution there is nowhere that bars Congress from shrinking the size of DC and in the same measure introduce DC into the Union. There is nowhere in the Constitution that bars this from happening.
Also the 23rd amendment problems would not need to be addressed immediately because if the size of DC shrunk the tiny number of residents left in the federal area would still stand entitled to three presidential electoral votes. True it would need to be addressed further down the road but it does not block the actual process of shrinking the size of DC to where federal business is not conducted and entering it into the union.
Also article one would not need to be amended. Article one "doesn’t say you can’t shrink the federal district; it only says it can’t be larger than “ten miles square” (100 square miles, in modern English). The District has been shrunk before without any changes to the U.S. Constitution"