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Your body fat is not that high, but your lack of muscle makes it look flabby. You have nothing to cut back to, so consider bulking VERY slowly and build a solid foundation of strength (what a your lifts, btw?). Keep doing 5x5 for a couple of months, but then I recommend changing to PHUL, since it has more volume. Also, if in that state you're having problems overloading you're either not eating right, undersleeping or your form is shit. At beginner stage your lifts should be going up in the 4-6 rep range pretty quickly.