Daily exercise only counts if it’s cardio and not muscle building. Otherwise the fat gets converted to muscle, which weighs more than fat.

That’s entirely wrong because there’s no way you can gain muscle mass as fast as you can lose fat.

A person can easily lose a pound of fat a weak and will have a difficult time, unless on PEDs, to gain a pound of muscle mass in the same time.

https://www.menshealth.com/uk/building-muscle/train-smarter/a61152787/how-much-muscle-gain-per-month/

So yes, muscle building aka hypertrophy via lifting weights will absolutely make you lose weight. In fact the heavier you lift the more fat your body will use in order to do work. Which will make you lose weight even faster.

https://www.menshealth.com/uk/building-muscle/a37009576/hypertrophy/