The Magic Loop method is a great way to knit socks, but it can be tricky to pick up stitches for the heel flap. It’s often hard to get enough slack to make it comfortable to pick up stitches without undoing the magic loop. Try using an interchangeable needle tip to pick up stitches instead. In the image on the left, the stitches are being picked up with the interchangeable tip. On the right, you can slide the stitches off the interchangeable tip by placing the tip of your working needle up against the back of the interchangeable tip. This is an easy way to slide the stitches off one needle and onto the other.
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