Oh gosh, this is because weight loss is not linear.
It's true about the muscles retaining water for repairs. You can also retain water due to hormones or due to increased salt intake. It's quite possible you were already retaining water, for whatever reason, and then you released it after a strength session. And, the muscles do not always retain water. It's mostly if you've stressed them with something they're not used to and you are feeling sore. At other times, strength training doesn't really affect the scale with any water weight.
This is one of those times you have to take the scale with a grain of salt and amuse yourself with it, but don't take it too seriously. Stick to plan.
Just stick to the plan, give it time, and the weight will have a serious downward trend.