Exercising doesn't increase the number of calories you can consume

What do you mean by the quote above? You describe focusing on driving ~500 kcal/day deficits based on the calorie needs of an average individual. The only way to lose more than ~1lb/week is with regular exercise (energy consumption).

I know lots of apps notoriously over-estimate calorie burn by using algorithms based on heart rates. But exercise absolutely consumes calories that can be measured, particularly if the activity could leverage a power meter.

After losing 35 pounds and getting back into shape 5 years ago I developed many of the same conclusions, e.g. calorie deficits, journaling everything, make your calories count by focusing on nutrient-dense foods.