Lose fat or gain muscle?!

Hi! 40F been at OTF since July which was a big life change for me. Have been on a health journey for two years and have lost 55 pounds. I’m excited to do the transformation challenge, but am unsure if I should focus on losing fat or gaining muscle. Any input is appreciated! My overall goals are to continue to lose weight and gain muscle as well, so I’m confused!

5’4” Highest weight: 198 CW: 143 Fat percentage: 30.3% Muscle percentage: 66%

Thanks! 😊