As you get leaner, you’ll most likely find carbs more easily handled by your system. I don’t know if I’d go keto if your still trying to build muscle while leaning down, but perhaps a more targeted approach, with lesser carbs on days when you won’t benefit from them as much.
Physique wise, keep hitting everything hard, but if competition is in your future plans, I’d really go after your upper chest and delts. I have no doubt that your arms will keep improving, but a solid pec/delt area will really balance your lower half on stage.
Look into setting a low incline bench (15-20 degrees) in between the cable station, and do low to high cable flyes at the beginning of your chest sessions. Additionally doing lower incline presses instead of the more traditional 45 degree benches, and in a more arcing and not linear bar path can have a profound impact as well.
Diet wise… I crunched the numbers and the diet you listed comes in at about 1800 cals and 120g carbs. If you’ve got extra fat, it is not because you’re eating too many carbs or calories. You’re eating less than my wife when she competed at 104 lbs. In all honesty, if you came to me as a client, I’d probably bump your calories by at least 800 a day, and double your carbs, then set up a program where your body will understand that the nutrients coming in are meant to be used to survive the work we’re going to ask it to do,