As long as she GETS under control, the baby should be fine most likely.

it is not nesscary the child that will be diabetic although you have type 2 diabetes because i had to go through similar problem but thankfully my son is not diabetic.i had heard about some test which detects wheter child is diabetic or not but it was cordocentesis not sure.

Tough question. The first weeks of a pregnancy are essential because it is when all the organs of a baby are formed, after that, the baby basically grows in size. Diabetical mothers are in more risk for some malformations, it’s very important if she was taking folic acid? and what her glicemias where without the insulin?
Once the glicemia is under control then the risks are pretty much the same as for the rest of the population.
The best thing to do would be keep the glicemia controled, keep taking the folic acid, and have another ultrasound later during the pregnancy.
The most common complication for a baby of a diabetic mother is being too big, but if you keep the blood sugar within normal levels then that shouldn’t be a problem.
I wouldn’t recommend cordocentesis, since it also carries some risks for the baby.
I know it’s difficult to have to live with the doubt but try to enjoy the pregnancy, insist on a healthy diet and good control from now on.
Everything should be fine. Good luck!

Most likely the baby will be fine