Larger muscles mean more strength?

Can someone please explain this to me? When we train, muscles adapt, grow, and through that growth they become stronger.

But how is it possible that there are people with smaller biceps, lats, etc. than mine who can do 20 pull-ups, while I struggle with one? Or that someone with thinner legs can squat 100 kg (220 lbs), while I struggle with half that weight despite having larger muscles?

There definitely must be more under the hood of this concept...

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