Didn't work out for a long time, approaching a shitty physique. Currently 171 cm, 132 pounds so my friends all tell me to bulk since that's a really low weight
but I have a lot of body fat... Wat do?
WHY DO PEOPLE THINK ITS ONE OR THE OTHER
if you havent worked out in a long time it means you have a rare opportunity to gain muscle and lose fat at the same time. keep up your same diet (probably a little more calories than normal given your photo) and make sure protein is adequate
Man i See people A LOT less fit / a lot more fat and people don't freak out.
Is it because my body seems to focus on burning muscle rather than fat, Aka im skinny fat or some shit?
Eh only mildly. You could have it a lot worse. I was 6' 150 with a beer gut when I started lifting. You've got a pretty good body type, good starting foundation for old school bodybuilder type. Consider yourself well off. Took me 6 months to even get some kind of taper whatsoever.