First af all, my body fat was always low so increasing it few % points actually looks good on me.

Second, to gain muscles (which was my primary goal) ideally you have to be in a caloric surplus, which will inevitably lead to fat gain.

Third, I think my scale has an algorithm like more weight-->fat gain. You can see this from the extremely good correlation between the fat graph and the weight graph. And also, when I got covid I lost like 2-3kg in 2 days which was mainly a water loss, but the scale thought that it was a fat loss, which would be impossible given the short period of time. So I think I actually gained less fat than what the scale is showing.