They told me that 37 weeks is still borderline and baby could have difficulty breathing and drinking. So they want her to wait at least until 38 weeks.
Strange that they stopped contractions at 36-37 weeks.. Not like you were 30-34 weeks and were super early to start labor, especially considering you're diabetic. I would have thought they'd just let you continue to labor, if it was real active labor. Soon enough she'll make her way into the world!