Dr. Bernstein has long argued this and documents it extensively in his book "Dr. Bernstein's Diabetes Solution"[1]. The main reason being that muscles act like natural glucose sinks that drain sugar directly out of the bloodstream, bypassing the liver, so more muscles = more glucose control.
I highly recommend the introductory chapter to "Dr. Bernstein's Diabetes Solution" by the way, even for non-diabetics. It's basically just the "Life and career" section of his wiki page, but in way more detail -- a really interesting biographical account about an industrial engineer doing diabetes self-experiments with a glucose meter he procured through his wife and going up against the medical community/orthodoxy and failing, only to finally break through when he got a medical degree late in life. I could probably upload and link to just that section if people are interested.
Have you studied control systems? Adding a second storage mechanism with different dynamics changes control, and may complicate it. Those muscles may increase hypoglycemic events as well as soften spikes.
2.5kg variation from moment to moment can be entirely accounted for by hydration status and intestinal content volume.