Caveat: I'm not a doctor and have only been T2 diagnosed for less than 3 months, so no expert on that score either. Just my personal experience and thoughts..
I had the same. Dropping weight without really trying to, coupled with peeing lots and often, made me go for blood tests and then my T2 diagnosis with BG up in the 20s.
Piecing things together - and I may be miles off the mark here - the glucose levels in the blood were high because the glucose wasn't getting taken into cells, either as 'fast energy' glycogen or 'slow energy' fat stores. As a result, the body was only/mostly reliant on existing fat stores for energy and I was effectively on a keto diet as far as my body was concerned, while not being on one as far as my mouth was concerned. Excessive peeing because the body is using all the water to try to flush the system means less water take up into the muscles, skin and other cells too so.. you'd be losing 'fat weight' due to ketosis - evidenced by the accompanying high Ketones measurement, 'muscle weight' due to the muscles working less efficiently through glycogen and water depletion, and 'water weight' because I was weeing it all away.
I don't claim that any of that is accurate. Just how I picture it in my head with a bit of thinking it through.
I've continued to lose weight but that's mostly been through diet and exercise, planning fuelling around exercise needs etc. so am looking more 'fit' and less 'skinny' than I was three months ago despite being slimmer still.
Definitely get the weight loss checked out fully though, in order to rule out anything other.