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I sell Prosperity all the time. Folks taking insulin and gabapentin/lyrica for neuropathy get level every time (provided they have no other health conditions that would knock them down to graded/modified). The Apptical interviewer will sometimes come back and reask the diabetic complications question if diabetes/nerve pain meds come up, but as long as they answer NO, they get level. The question asks if within the last 2 years, you've been diagnosed, treated, had medication or been hospitalized for diabetic complications such as insulin shock or diabetic coma or had an amputation due to complications of any disease. That doesn't sound to me like they are including diabetic neuropathy.
What it sounds like to you doesnt matter. What you've dont in reality is put all your diabetic clients in one of the worse situation possible for FE. Sounds like to me, if you wrote one of my parents or clients, I'd have your license yanked.