I’ve also seen some people claim it (or just weight loss in general) can reverse type 2 diabetes. As in people are able to maintain blood sugar levels without medication after losing 10-20% of their weight. Is this really about GLPs or just getting healthy in terms of obesity?

The GLP-1 gets you healthy by turning off the reward center in your brain that was causing you to overeat or eat foods leading to or exacerbating diabetes.