What you see is very normal, and seems to be more the rule than the exception with T2 diabetics. I've tried to find the answer to the "is this good?" question, and have given up. Some people believe that eating late in the day is better because they wake up with lower readings in the morning. Other people suggest the rise from eating in the evening outweighs the lower morning readings, so it's worse not better overall. Some people claim that the elevated morning level is ridding your body of excess glucose and/or working towards lowering dawn phenomenon.
I have looked and have not found any firm science indicating whether eating to reduce DP is better for reversing insulin resistance than "letting it ride". For me this extends to longer fasting periods, as I also do some IF. I am now taking the position that as long as my A1C is improving, I wont worry so much about the little details, like whether I wake up at 6.9 or 5.5. If anyone has seen any actual studies on this, I would love to see it.