Q: If one person has a calorie deficit of 1000 calories when burning 2200 calories but eating only 1200 calories and a 2nd person has a calorie deficit of 1000 calories when burning 4000 calories and eating 3000 calories isnt it true that the first person has much more of a chance of losing muscle than the second person?

A: Yep, you're correct. The first person would only be eating 1200/2200 = 54% of the calories he/she uses while the second one would be eating 3000/4000 = 75% of what he/she uses. All other things being equal, the first person is in much more severe calorie deficit than the second and consequently much more at risk of losing muscle.