Hi Jack
C-peptide and GAD tests are usually only done if you present with certain symptoms that could indicate T1 such as weight loss, high hba1c, ketones. Depending on how you presented on diagnosis a lot of people will just automatically be classed as type 2 based on age, weight & family history.
Type 1’s experience hypoglycaemia when there is too much insulin, balancing carbs and injecting insulin along with all other life factors is no easy thing.
Insulin does lower blood sugar. Think of insulin as a key and in a diabetics body glucose is locked behind a door. Insulin unlocks the door & allows glucose to be processed. However if you are insulin resistant, which a lot of type 2’s are, more locks appear on the door trapping the glucose in our cells. Type 2’s with insulin resistance are fighting a loosing battle by injecting more insulin, it creates more barriers and raises glucose levels.
Type 1’s need insulin because they either have very little or none. Type 2’s need to produce less insulin & this can be achieved by reducing carbs.
Having said that everyone is different and sometimes being on insulin is the right thing for Type 2’s
I note that your not sure how many carbs are in your diet. Perhaps try keeping a food diary & carb counting for a few days to see if you are consuming more than you thought. Some type 2s need to go really low carb to get where they want to be. If you can get the docs to give you a c-peptide it will let you know how much insulin your producing & you can work from there.