From 48 seconds onwards that sort of melodic sleepy sound it's just lovely I've tried picking chords and putting stuff together and I just cannot get such a beautiful sound. I maybe just lack the creativity to put the right sounds together but I can just never get a nice picking pattern and chords to make such a thing with either barre chords or open.

What sort of songs and music should I start out with to help my creativity on this type of music. Most songs I've played until now are just strum my happy singalong type things that are getting boring to play now. The most melodic thing I can play is bloodstream by sheeran but I want to be able to create my own stuff.
I want to be able to one day rewrite songs finger style and rearrange them. But first I just want to work out how to make a little jam of my own up.
Get the how to play like chet atkins guitar book. It will open up a world of possibilities. I can say without a doubt that that book changed my life, and turned me into the guitarist I am today. All the voicing chet uses helps with composing so much, as he uses a lot of extended voicing that open up the fret board, and his use of open strings is genius.
Honestly I just dove in headfirst, printed out tabs and went at it till I got it. He's using a pick, but personally I'd use fingers for this song (probably). Once you learn a few songs like this you learn how they're structured and how you can put your own together.
Granted, I didn't learn this specific genre, but what I learned (American Primitivism) has that melodic sound as well. Check out On The Sunny Side Of The Ocean by John Fahey, Sailors Grave On The Prairie by Leo Kottke, or When Kings Come Home by Peter Lang