Afaik it’s quite reliable as long as you’re not very muscular. I’m 190cm and roughly 80-85kg, which is a quite normal (but a bit higher than avg) according to BMI. I also have a bit of a beer belly and definitely feel like I could lose some fat.

Unless you work out a lot and are muscular, I’d expect the classification of obese to be correct for your height and weight. 10cm taller than me and 35kg heavier doesn’t sound like a weight within the healthy range unless it’s muscle.