Confused about how much weight "IT" says I'll lose in said t

The weight loss that is projected based on the calorie deficit you are creating. MFP is set up so that you eat back your exercise calories, you don't have to, not everyone does, but that is how it is set up.

For instance...to create a calorie deficit of 500 calories a day I am down to 1275 calories.

1275 + 0 exercise cals = 1275 calories I should be eating that day
1275 + 385 exercise cals = 1660 calories I should eat.

With this set up, working out does not affect my overall goal of a deficit of 500 cals a day. Obviously if I choose not to eat back my exercise cals or only some of them, I will create a bigger deficit.

Hope that helps.

So I'm confused about something here. Wether I exercise 0 minutes 0 times a week or 7 days a week 1 hour a day it still says my projected weight loss will only be 10 pounds in a month? really? obviously this is false so I was wondering if this is a glitch in the system as no matter what I choose for my exercise I'm going to lose the same amount of weight. Also wether I exercise 1 hour a day or do nothing at all it still wants me to eat 1940 calories which is confusing again because I thought you had to consume a bit more calories if you're exercising a lot

I noticed once I started tracking my exercise it did say I was allowed to eat more and showed me how much I had earned.

So I'm confused about something here. Wether I exercise 0 minutes 0 times a week or 7 days a week 1 hour a day it still says my projected weight loss will only be 10 pounds in a month? really? obviously this is false so I was wondering if this is a glitch in the system as no matter what I choose for my exercise I'm going to lose the same amount of weight. Also wether I exercise 1 hour a day or do nothing at all it still wants me to eat 1940 calories which is confusing again because I thought you had to consume a bit more calories if you're exercising a lot

It counts NOT, because your settings should be based on 1lb weekly weight loss which is just under 4lbs per month.
Stop trying to go for the quick weight loss and just take it slow, losing good weight - not muscle.

MFP has already figured out your total calories you need to eat per day to lose 1lb etc. a week. That's WITHOUT exercise. You'll notice that when you actually add exercise in, the calorie limit goes up. Why? Because it's telling you to eat your exercise calories. Large deficits aren't really good to do because while you will lose weight, what kind of weight will it be? In many cases you'll lose lean muscle tissue which LOWERS your metabolic rate even more. Then you have to eat even less to compensate for less of a calorie burn to continue to lose the same amount of weight each week.
Be efficient. Exercise hard and eat back the calories. The hard exercise will RAISE your metabolic rate and burn more fat at rest.