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I disagree with what your friend said but i do have a legitimate question. I've heard of 2 things;
1: Fat will only be utilized as a energy source if the need for energy is low(low intensity activities such as lower % cardio). However, you can still use high intensity activities(sprints, weight lifting) as the post-exercise recovery bumps your metabolic rate(and since you're technically resting/low intensity, it'll use far as an energy source to deplete).
2: Muscle is "expensive" for the body and therefore is the first to go when you're on a calorie deficit without any exercise(regardless of how much of a deficit). This is minimized when you induce muscle breakdown(such as exercising) as the body still sees a need to keep it around. Otherwise, the body prefers to break down muscle as it's not as required as fat.
Any truth in either?
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