Look at the research papers that were published by the Newcastle team when they correctly measured the fat in people livers (using their very powerful MRI scanner). Everybody who had Type2 had lots of liver fat, everybody who reversed type2 lost this liver fat. (High BG plus high insulin drives the increase in this fat.)
NAFLD is only detected with blood tests when the liver fat gets to a very high level, but liver fat at a much lower level also greatly increase IR. People can have NAFLD without Type2, as some people can make enough insulin to overcome even a very high level of insulin resistance.
The paper you linked to is about pre-diabetes, and it correctly says that at that point the issue is mostly muscle IR. Muscle IR plus high carbs give us very high insulin, this results in the fat build-up on the liver. But if we remove the high carbs, then the muscle IR is not a problem……
Dr Roy Taylor has proved the “twin cycle hypothesis”, he is not a supporter of low carb, but I think he has correctly discovered the process that goes on when someone reverses Type2.