I have never heard that ketoacidosis, a life threatening event, occurs in Type 2 diabetics on or off a low carb diet. Getting into ketosis, yes, that is what enables you to burn energy from fat rather than from carbs and shed several lbs every week. I am on about 20-25 grams of carbs a day, so am in that category and initially my bg dropped like a rock as well and that allowed me to discontinue my use of Lantus as a basal insulin and I was able to cut my Humalog by over 70%. So in short, I got the weight drop I was looking for and dramatically reduced my insulin use which made me feel much better as well. I am now slowly increasing my vegatable and fruit intake to have a more varied diet and to stop my ever slowly increasing LDL from eating way too much saturated fats.
Your way of eating, I believe, will allow you to keep your BG’s well in control but I question how you will be able to lose weight on that diet. The 2 experts on this forum on your way of eating are Marilyn6 and Marie20 who posted a little higher up in this thread. I am sure they would either or both be happy to share tips if you want or need them.
In the meantime have a wonderful holiday!!!