As i understand it, NFB increases dynamics. ...
I think you're misusing the term "dynamics" or your definition of what it means is different than what I'm familiar with.
To me, "dynamics" means a band's (or musical piece) use of varying volume levels to add impact to a song or to differentiate sections within a piece of music. So it follows that players who use dynamics well are ones who vary the volume, intensity or accentuation of what they're playing to give a song movement.
If we say a simple definiton of "dynamics" is "volume variation" then a compressor reduces dynamics and an expander
may increase dynamics.
In my opinion, negatve feedback doesn't really change dynamics except maybe very, very indirectly. More NFB usually equals a little more volume reduction compared to no negative feedback, but most people don't have switches on their amps to give full-feedback/zero-feedback. Depending on the rest of the amp design, more feedback will probably sound cleaner, tighter, and maybe faster/more percussive.
Now if a player makes use of that tighter, punchier sound in their playing style then maybe the overall result equals more dynamics. But if you NFB around the output section of a master volume amp, set the master at 2 and dime the preamp volume to heavily distort the signal, there will probably be less dynamic range, even with the same amp.
So from my perspective, NFB has little to do with "dynamics" except maybe as a piece of a whole approach.