Losing muscle automatically means BF% going up, even if bodyfat doesn’t increase.
Is your protein intake good? Are you tracking? Aim for 1g/lb of bodyweight (not lean mass unless you’re obese).
Also, no scale can tell you what your BF% is. That’s a gimmick. It’s either too little protein, to little calories, and most times both. Are you lifting weights or any other workouts to retain and gain muscle mass?