Here’s the thing I’ve observed from the Keto-sphere and from my own experience and a little from some people in other groups. All of these things together have solidified my belief that there is absolutely no reason to limit protein at all on a weight loss or lifestyle keto diet. No matter if you’re diabetic or not.

Among the general keto population the idea seems split.
To majorly generalize it, you have a population and reputable resources that tell you too much protein will turn into glucose. They seem to suggest that this results in kicking you it if ketosis and the general belief is that you will fail to lose weight and it will negatively affect blood sugar.
Some names that come to mind with this belief are Ketovangelists, Jimmy Moore, Dr Adam Nally and 2Keto Dudes. This camp seems to back this up with individual blood sugar readings after consuming protein. Blood sugar will rise, that’s true but that’s not the problem they tend to pitch it as being.
In the other camp, they believe in the science that shows that the process of protein becoming glucose (GNG) is first of all, not exactly like that and also a demand driven process and back this up with scientific resources. They admit that blood glucose will rise after consuming protein and fully explain, with evidence, why this is a non issue.
These people are Dr Richard Bernstein, Dr Ted Naiman, Dr Eric Westman, Dr’s Stephen Phinney and Jeff Volek, the people at Ketogains, Robb Wolf, Amy Burger and RD Dikeman just to name a few.

My personal observations from my own experience is that I limited protein and followed the first groups advice and sang their praises for months while I quickly dropped 25 pounds but remained quite fat. I hit a wall where I would’ve had to restrict calories considerably below what my activity tracker and every online resource would suggest would be necessary for someone of my size and activity level if I wanted to lose more scale weight. I had reached a normal BMI but my bodyfat according to the Navy calculator was quite “overfat”. Nearly in the obese range even! I believe muscle loss is responsible for my significant reduction in BMR and the fact I was left smaller but still too fat.
It’s been 2 years since I began eating more protein and less fat, and I still have yet to create any more scale weight loss but my bodyfat (Navy calculator) has continued to drop. Considerably more than with the 25 pound loss I initially had.
Let me make sure you got that. I lost 25 pounds with less fat loss than I have had with a 2 pound gain over the last 2 years without exercise. I am now in a position where I really need to build the muscle I lost back if I ever want to get the final bodyfat loss I want.

What I’ve seen in some others that have decided to increase protein and reduce fat a bit, even diabetic people who are warned they need to limit protein even further for some stupid reason (my bias is showing. I’m ok with that. Lol) is that they initially have higher blood sugars until it levels off and they finally achieve even better overall numbers at that time. In many cases finally making improvement in dawn phenomenon too.
As we get older we need more protein and people with high insulin need more protein so their insulin can work on that instead of their muscle. If insulin is high and you aren’t providing a substrate it to work on while you also work to reduce it, you are sacrificing your muscle. Having more muscle is more protective against insulin resistance so it doesn’t make sense to allow it to be reduced by your higher demand for GNG.
The action of insulin on amino acids (protein) is not the same as its action on glucose. Insulin is required for uptake of amino acids into cells like lean tissue and bone. This is not the same as stuffing glucose or fat into already full adipose cells which is what drives insulin resistance.

There’s a huge and detailed write up by Amy Berger to fully understand how all of this works I’ll link for everyone.

But here’s my bottom line.
Jimmy Moore went from obese to healthy weight back to obese in over 10 years of keto and now extended fasting as well and doesn’t seem to have improved his insulin resistance much if at all. He blames being “severely insulin resistant” for this fact. He has always practiced the limited protein and add fat to your already fatty foods method of keto. It’s not working very well for him.
Tyler Cartwright of Ketogains went from being obese to very lean in (not sure how many years) and fully reversed all signs of metabolic disease by concentrating on nutrient density and protein foods and only adding extra fat to maintain weight as needed. It’s working quite well for him.
I know there are plenty of examples of people using the limited protein version that have had great results unlike Jimmy but I will ask if they are lean or just skinny? Because most people would say that I am skinny... but I am far from lean and that makes all the difference in the world.

This is all my opinion and the things above are what influenced my opinion. Others certainly disagree. That’s ok. The only final point I can think to make is,
If the “limit protein camp” is wrong, the price is loss of muscle and lower bmr beyond what occurs from just being a smaller person and difficulty maintaining weight loss or losing further weight.
If the “don’t limit camp” is wrong, the price is slightly slower reduction of insulin resistance and slower overall weight loss without any risk to muscle loss and further reduced bmr beyond what occurs by must having a smaller body.

I would rather be wrong than take that risk.