Why have my clothes become loose even though my weight is the same?

I have been consistently controlling my diet and exercising lately, but strangely, the number on the scale has barely changed. So I thought my diet wasn't working, but recently, my pants and clothes seem to fit looser than before, and people around me are telling me that I look like I've lost weight.

My weight remains the same, but my waist and thighs feel a bit looser, which I find fascinating. On the other hand, I'm worried about whether it's okay to continue as I am now since my weight isn't decreasing. I've heard that this could happen because body fat decreases and muscle mass increases when getting an InBody scan, and I'm curious if that is actually a common occurrence.

Has anyone else experienced a similar situation where their clothing size decreased or their body shape changed without much change in weight? In this case, I am wondering if I should pay more attention to visual assessment or body composition analysis than the numbers on the scale, and if it is okay to continue exercising and following my current diet.