The purpose of a caloric deficit is that your body is forced to burn up its own tissue to continue to keep you alive. Once the truly excess fat is burned up, the body starts burning muscle, too. Which is obviously going to make getting stronger impossible.
So you have two options.
- continue to starve, reduce your lifts to a maintenance level (whatever you can lift without drama and fainting) and get smaller, or
- eat more, weight loss will slow or stop, but you can then get stronger
Which you choose is up to you.
Your elbow issue I'm willing to bet has to do with your squatting grip. This site has a video about it, watch it.