In the morning you also have dawn phenomenon to contend with, your morning readings'll be the last to come down. Your liver tends to dump glucose into your system to help you start the day, and in the morning the bulk of us are more insulin resistant than we are the rest of the day. In all likelihood your blood sugars were much lower than that 7,8 around 3 a.m., so don't worry about staying high all night and waking elevated in the morning. Odds are, you missed the dip before the morning liver dump brought your numbers back up when you woke. Keep up the low carbing and you'll eventually see the morning numbers go down too, as the stored glucose in your liver gets depleted. It's a long game, but it does work.
Also keep in mind that you have a lot going on, physically, and that too can up blood sugars. A body in pain is a stressed body, and inflammatory conditions can also trigger a glucose dump from the liver. Some meds can up blood sugars too. So when you have all that to handle too... It could've been a whole lot worse, and honestly... 8,3 is still in the normal range for after a meal. You ARE doing well, and exceptionally well under the circumstances, if you ask my not so humble opinion.
All that said though, it might be more useful for you to spend a fortnight with a CGM, so you know what happens in the night, and you see blood sugars dip and rise, and can relate that to Dawn Phenomenon, physical stress, medication or foods. All in all though... You are doing well. We can't always do something about the things that make blood sugars rise, but we can control foods... And you're doing that already, and from the looks of it successfully. In spite of what everything else is throwing at you. So I do think a pat on the back is more in order than a question of what you're doing wrong.
Hugs,
Jo