Apparently I am obese!! Looked up my height/weight on a bmi chart and found that I have a BMI of ~32! Is bmi a good indicator be being fat?

I am 5'9" and weight 215-220lbs...from like 2013-2015 I was pretty good about working out, but never did any serious weights, max bench was like 205ish, never really worked at it was mostly interested in being toned while also strong.

gym i went to closed and never really got back in to a rhythm at a new place, and still basically never lift (like maybe 5 times since new years).

anyway when i look at mirror obese is not what i think, i dont lie i do have some fat but i guess my idea of obese is something else...here are some pics for reference:

two questions: 1. Is BMI a good indicator of being fat? 2. Lets say I was somehow able to get rid of basically all the fat (while staying healthy) but still weighed the same amount due to muscle increase. I know this is not reasonable, but if it were possible would I still be unhealthy? I guess my question is is it the actual weight that is bad for you, or is it the excess fat that is bad for you? Both?