To be honest, I don't think it's a side effect from the medication. It is generally well tolerated by cats. Typically you notice a change for the better once they are on the medication. Depending on the liver values, it could have something to do with not feeling well because of that. It sounds like your vet has a good/aggressive approach.
If she has a thyroid problem and the medication isn't controlling it properly, that could cause her weight loss. Also, if she hasn't been eating much or at all, that would cause the weight loss as well. I know that some cats on Tapazole/methimazole have problems with vomiting and appetite loss. I would definitely listen to your vet about taking her in if she doesn't start eating very soon. Cats can get very sick if they don't eat.
I don't have any advice, I just wanted to say I'm sorry you are going through such a rough time with your furbabies. Sending good vibes to you and them.
Hi Everyone
Thanks for your replies and thoughts. She had to be taken in to the vets yesterday to be put on some drips as she had still not eaten anything. He as put her back on the same medication again which I do hope was not causing her to loose the weight as she is still not eating at the moment. The vet is going to do another blood profile on her today to see if the thyroid problem had worsened ...so just waiting for that result and hoping she will start to eat again soon.