It may not be very noticeable but you are building muscle. Body change is slow but you will get there. Don't be discourage, you already made gains from weight lost alone, just keep at it and you will hit your goal. It took me a while to see growth in arms but it will come.

At this point, I will say go try free weights. You have been using machines for close to a year so you should have the general motion down for each exercise. You can try pushing back with your trainer/coach and insist on starting some free weights.

When using free weights, start light, get comfortable with the motion, then move to more heavy. Try to restrict any extra motion outside of the movement you are working on. If you need to do extra motions to move the weight, go lighter or try negatives. Negatives are the motion of slowly relaxing the muscle. For example, when doing bicep curls, there are two motions, a pull towards you (contracting the bicep) and a release down (relaxing the bicep). Negatives are the relax part of the motion but you relax as slow as possible, let the weight go down as slow as you can. Negatives can help build strength without going through the whole motion.

Negatives really help with pull ups if you can't do any. Grab hold of a bar at a high position and as slowly as you can lower yourself down.