In type II or non-insulin-dependent diabetes body become irresponsive to insulin. That means target tissues fail to respond appropriately to insulin.
Many things related to nature of type 2 diabetes remains poorly understood - in some patients, the insulin receptor is abnormal, in others, one or more aspects of insulin signaling is defective, and in others, no defect has been identified.
In general all changes in tissues caused by this disease are catabolic by nature, so from this point of view, it may be logical to look toward anabolics.
Hardly I can imagine that you will find some doctor who will prescribe you testosterone as a treatment for type 2 diabetes.