Simultaneous Transmitting and Reflecting Reconfigurable Intelligent Surfaces (STAR-RISs) are being explored for the next generation of sixth-generation (6G) networks. A promising configuration for their deployment is within cell-free massive multiple-input multiple-output (MIMO) systems. However, despite the advantages that STAR-RISs could bring, challenges such as electromagnetic interference (EMI) and phase errors may lead to significant performance degradation. In this paper, we investigate the impact of EMI and phase errors on STAR-RIS-assisted cell-free massive MIMO systems and propose techniques to mitigate these effects. We introduce a novel projected gradient descent (GD) algorithm for STAR-RIS coefficient matrix design by minimizing the local channel estimation normalised mean square error. We also derive the closed-form expressions of the uplink and downlink spectral efficiency (SE) to analyze system performance with EMI and phase errors, in which fractional power control methods are applied for performance improvement. The results reveal that the projected GD algorithm can effectively tackle EMI and phase errors to improve estimation accuracy and compensate for performance degradation with nearly $10\%\sim20\%$ SE improvement. Moreover, increasing access points (APs), antennas per AP, and STAR-RIS elements can also improve SE performance. Applying STAR-RIS in the proposed system achieves a larger $25\%$-likely SE than conventional RISs. However, the advantages of employing more STAR-RIS elements are reduced when EMI is severe.