It raises the blood sugar levels as the body supplies the muscles with carbohydrates, and triggers a complementary response in appetite hormones.
Finally, and most importantly:
Exercise releases dopamine.
Dieting is universally a mood killer, because kilo-joule deficit equals starvation.
So whilst it does not directly impact weight loss. It still makes it (a bit) easier.
Plus there are an enormous quantity of other factors in health that are impacted by exercise.
Bodily strength is entirely responsible, for example, for stopping you getting a "bad back."
The less strength you have in your back muscles, the more strain your vertebra and ligaments are under. Hence your body falls apart quickly and more easily.
You definitely need both kilo-joule control and strengthening exercise if you want to keep your life on track.