I can only give a partial answer.
The reason is in part to the fact that not all type 2 diabetics not producing insulin some only require medications which aid the production or efficiency of insulin and most still produce some insulin just not enough to effectively manage their carbohydrate intake.
Because of this when a type 2 diabetic has high blood sugars some of the glucose can still be processed and so the body is less likely to breakdown fat and muscle for energy.
Conversely many other diabetics that produce no insulin can be quite slim as unless your diabetes is well managed its generally harder to gain fat and muscle, though not impossible.
Talking about Insulin on its own its purpose is to allow glucose to be moved into the cells of the body where is either utilised or stored depending on needs so using it when you are producing a normal amount of insulin will force your body to store the sugar in the liver rather than as fat or muscle.
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