"Skinny Fat" To bulk or cut first?
This is going to be a short post.
The answer is cut. The reason for this is because you will look so much better. The last thing you want to do it add fat and bulk onto a frame that is already a relatively high body fat.
Even if you are 130 lbs and "skinny fat" male you need to cut the fat first. It looks much more impressive and it is much easier to add muscle on a quality frame that is already lean!
As far as cosmetics go, being lean always wins. Scale weight is irrelevant. For all males if you are above 14 percent body fat you have no business going on a bulk. Females anything above 18 percent you do not belong on a bulk.
Dial in the calories and get lean first. ALWAYS.