Losing weight, but too much muscle

Hi all, wondering if I can plumb the brain trust here a bit.

Some background:

36M 182cm starting back in. I've been the typical ectomorph all my life,

between 65-75kg with low BF, typically under 12% with some training and

rarely over 14%. Last 6 or so years with long hours in the office that

has gradually moved up to 92kg (203lbs). That was at about 26% bodyfat %

leaving a LMB of 149.1 and fat of 52.8. Essentially all the weight I

had gained was pure fat, my LBM has barely changed going back to 2006 or

so. (checked several times when I stop started at getting back in

shape).

Previously I was able to drop fat pretty easily with minimal HIIT or

even just changing diet and letting it trend down to normal, never with

much muscle loss. However I've only ever lifted with some HIIT, never

much cardio volume.

Onto recent times

I've no issue sticking to a diet or schedule, usually makes it all fairly simple and formulaic.

Set my macro cals limit at 2050 kCals (13.8 times LMB as I've done

before, for reference I'd set 18 times on a bulk and 12 on a cut with

less volume cardio) and essentially been around or very slightly under

this, combined with cardio for the 500 cal per day deficit and aimed

0.5kg sustainable drop per week.

In week 8 of the BBP, full 5 day schedule 80%+ at UT2 (morning fasted

for the UT2 workouts, carb stack before intense and protein and carbs

after), remainder high intensity., (10 weeks of clean eating total) and

on track weight wise almost exactly, only very slightly ahead

(86.5kg/190lbs), so down 5.5 over 10 weeks, allowing for the normal

1-1.5kg variance. However my BF % remains at 25%, I've lose slightly

more lean muscle than fat! (6.5lbs muscles, 5.5lbs fat).