Although it sounds counter-intuitive, there is increasing evidence to suggest that fat in your diet doesn't lead to fat in your body or internal organs,
per se. It seems to me - and this is strictly a layman's view - that what causes the damage is too much of anything, causing your body to stockpile fat wherever it can (yes, I do have a PhD in The Bleedin' Obvious
). If this is correct, then a low-carb diet, and exercise should help; low carb because a diabetic needs sugar like s/he needs a hole in the head and exercise because it helps burn off calories and keep you to a healthy weight. I'm not sure that there is anything inherently beneficial about increasing your fat intake, but you need something to replace the carbs that you remove from your diet and it's got to be either protein or fat. Just bear in mind that fat contains lots of calories, and too much of it will be no better for you than too much of anything else.
What I
am convinced about, after several years of T2, is that sugar is the main culprit. I've been on a low (ish) carb, medium fat diet for several years, combined with regular exercise, and my numbers are all good, including liver function, cholesterol and so forth. My GP has stopped testing my Triglyceride levels (which indicate too much fat in the blood and liver,
inter alia) because he reckons there's no need. I was on metformin to start with, but don't currently need it: I accept that maybe I've been lucky about all this; our bodies are all different.
Hope this helps.