True, but the amount of people who are technically "overweight" due to high muscle mass are statistically insignificant. Even most professional athletes are in the normal BMI range; it's only a few sports or positions that rely on power where they tend to be heavier.
BMI is a perfectly fine societal tool. It is a bit less effective individually, but that’s between you are your doctor. If your doctor says your BMI is bad, it ain’t cause you’re a body builder (and for the record, body builders leaving normal BMI also increases their risks of various health problems)
Also, the vast majority of body builders are in “overweight”. Most muscle heavy gym goers should still be in normal BMI, or maybe the low end of overweight at a 10-15% body fat.