Hi crewski & welcome to this forum.

Yes nerves can heal over time and it is a slow process, but once the cause of the nerve damage is taking away it does give the nerves a chance to heal.
Mine was caused also by prediabetes with mostly small fibre damage, plus some large nerve damage as well, going by an EMG.

Supplements that have helped are,
B12 methylcobalamin 1 -5 mg daily [ on an empty stomache ]
gamma-linolenic acid - 480 mg daily [ 2x 240 mg]
R lipioc acid - 100 mg daily
Thiamine 100 mg x 3 tabs daily.

It is very hard at first to work out if the nerves are healing or flaring up, at least in my case I couldn't tell the differance for at least 8 months then the symptoms become less severe and less often which went on for a few years until they were completly healed.

best of luck to you
Brian