Logarithm compact definition question

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Hi I understand the following text, but have questions on the part after it:

A

I'm confused how applying the compact definition below yields $b^{log_b(xy)} = xy$. How does $xy$ get multiplied as the argument to $log_b$?

B

Finally, it's my understanding that multiplying two expressions corresponds to adding their logarithms? I see the last line expresses this, however the result is still $log_b(xy)$ and not $xy$.

Appreciate your guidance.

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The compact definition says, $s ^ {\log_s r} = r$

Take $r = xy$, $s = b$