Basically it’s because the muscles use predominantly carbohydrate rather than fat when working hard in an activity like cycling. Our bodies can only store so much carbohydrate as glycogen in the muscles and the liver I think.
Roughly enough for about 2 hours of active cycling depending on the level at which you are riding. After that the body will start to burn more fat but your energy levels will be severely depleted and you will hit the wall or ‘bonk’ as cyclists traditionally describe it.
There are many resources on line that can explain it a lot more fully than I can but basically depending on the level of cycling that you are doing you should look to replace about 50-60g of carbohydrate per hour of activity. This should also be high glycemic index sources of carbohydrate which get absorbed by the gut relatively quickly for use by the muscles.
I can’t answer the rest of your queries about food turning to fat I’m afraid but as I said before there are mega amounts of resources on line which should be able to answer your queries if you Google for them.