No, but CNS helps control it as per D. Rocky Patel from his clinic and practice.

Carb Nite: 200g carbs (if you hit all 30g carbs every day ULC) during ULC part of the week, and about 300-700 during your CN (depending on men vs women) that's a total of 500-900g carbs for a whole week.Standard American Diet Recommendation: On the SAD it is recommended that you eat 225-405g carbs per day depending on your daily caloric load (2000-2500), which would come out to 1,575g carbs on the low end, and 2,835g carbs on the high end for a week.Carb Nite: 160-162 hours per week with 30g or less carbs, and 6-8 hours per week high carbs. That's about 5% of your time during week is filled with high carb.Standard American Diet Recommendation: 50-70% carbohydrates per day.....So no. Not only have I never heard of it causing diabetes... I really don't think its possible. I only listed CN and not CBL because generally people who are on CBL tend to already be pretty healthy and are looking for muscle gains, people who are in fear of diabetes are probably on CN anyway.

I think there are some people who believe CBL/CN will cause diabetes since you are consumed a large amount of carbs in a small period of time.  The reality is that you are overall consuming far less carbs than the SAD, plus you're consuming at a specific time of the day(night), and often PWO where it is easier to control blood sugar.