My assumption is that it does not, but I should explain.
It is a very commonly prescribed solution for "skinny fat" people to maintain their weight and begin adding muscle. The idea is that one will have put on, say, 15 lbs. of muscle by maintaining a high nitrogen balance, but keep the same amount of fat. This would bring the overall bodyfat percentage down.
If one has never lifted before, one would see major results in the arms and chest, muscles which can grow very large and thus sort of poke out through the fat, causing a much slimmer appearance.
Now, let's say that one carries a majority of their fat on their stomach. The abdominals are not muscles which protrude outward (very few people have genetics that would cause something like this), meaning that they would never get so massive that they would penetrate through a major layer of fat.
So, if one says that body recomposition can be the solution to so-called "skinny fat" (which for men almost always means stomach fat), do they mean to say that the fat in the stomach will go elsewhere due to a lower bodyfat percentage, or are they suggesting something else?
Keep in mind that we are NOT losing fat. If we began at 10 lbs., we are ending at 10 lbs. The overall amount of fat is static, we are only adding muscle.