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They turn into glucose and hang out in the blood causing problems until the kidneys filter it out and excrete it.

And if the diet is very high in fat? The body will convert the fat to glucose?

To ketones.

True is you manage to get into keto. But what happens if you get close, but not quite?

TL;DR: dietary fatty acids are disassembled and then reassembled into triglycerides which are stored in adipocytes (fat cells) until needed.