Here's what I think: It's surprisingly common to see posts here about body fat or muscle-mass percent changes that don't really hold together, because many people don't understand the arithmetic.
My basic point, because this is going to be long (again): If you care about body composition, convert body fat or muscle-mass percent into actual pounds/kilos of body fat and not-body-fat, or muscle pounds/kilos and not-muscle pounds/kilos, before reacting to results.
Looking at the percent can lead to misinterpretations in two directions. To talk about it, I'm going to pretend these percents are exact, even though we all know there's an error rate in the picture, too, especially if the numbers come from a home BIA scale.
A recent post, specific details changed so as not to (bleep) on someone's happiness, celebrated a thing like going from 250 pounds to 200 pounds, while also increasing muscle mass from 55% to 65%. Increasing muscle in a deficit, yay!
But no. Look at pounds: 55% of 250 is 137.5 pounds of muscle mass. 65% of 200 pounds is 130 pounds, so a net loss of 7.5 pounds of muscle. Not quite so yay - not bad in this fake example (I'll explain why later), but a decrease, not an increase in muscle mass.
The real case was actually more extreme than my fake example. The person had lost well over 100 pounds - genuine, sincere yay - but when considered in pounds, the person's lost weight was nearly 40% muscle, 60% fat (or maybe other tissue, too, but probably mostly fat). That's startling, and IMO way less yay.
We all lose some lean tissue when losing fat, some of which we objectively don't need anymore. A common rough rule of thumb is that reasonable weight loss will be around 75% fat, 25% lean mass. (Noting that lean mass is a larger category that includes muscle mass, so is not the same thing as muscle mass.) Those proportions vary in individuals, for a lot of reasons, so that's a very, very rough approximation.
The weight loss rate in the actual case was very rapid, like over 4 pounds weight loss per week on average . . . high risk of losing muscle mass. The result was losing 40% of the weight in muscle mass, higher than that rough 25/75 estimate by a good bit, and still not considering whether additional lean mass was lost that wasn't muscle. Y'know how we often tell people not to lose weight too fast because it can cause unnecessarily high loss of lean mass? Yeah.
OK, I mentioned misinterpretations in two directions. Here's the other direction:
Another thing we see sometimes is people saying something like "I've lost 20 pounds, but my body fat is still 30%. Why didn't I lose fat?" Well, if they used to weigh 220 pounds, and now weigh 200 pounds, 30% of 220 is 66 pounds of fat, and 30% of 200 is 60 pounds of body fat. (Yeah, that's still not a great fat to lean tissue loss ratio, but I totally made up the numbers in this example. Any given percent of a big number is more than the same percent of a smaller number. The main point holds: If weight changed, but body fat percent didn't, the pounds of body fat have changed.)
Again, my main point: Don't just look at the percents. Look at the pounds or kilos, too. Looking at both will provide better insight.
P.S. I was gonna post this in Health and Weight Loss, but decided someone would probably want to debate it. 😉