No you are wrong, you are holding the muscle, it’s just there isn’t as big of layer of fat laying on top of it making it look bigger. As long as you keep training your body will hold on to the muscle.
Dude wait till you can see cuts in your muscle, actualky see the way it looks when you flex it, not hidden under all that fat and you will be so addicted to being lean.
Btw you can see the improvments you have made already. You have your work cut out for you, don’t get discouraged it’s worth it.