The amount of matter/energy *does* stay constant and it also *does* get more diffuse because it spreads out to fill a greater volume. Both are true.
The only way the universe could expand and yet remain at the same density is if more matter/energy was being constantly created. That was Sir Fred Hoyle’s Steady State theory. But the theory he mockingly named “The Big Bang” turns out to have been the better description, and retained the name, ironically.
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