There is not enough information in your post to provide a proper and full answer.
"I watch what I eat and track it everyday."
Which is what? People say "watch" but eat the wrong types of foods. Are you on a restricted carbohydrate diet? If no it's time you were. Are you eating starchy foods like potatoes, pasta, white rice, or foods made with white flour such as white breads and crackers? How are you controlling and managing your diabetes? What are your daily glucose levels? What is also missing are the results of a medical examination. When was the last time you had one? Doctor said what to you? As you can see too many questions and not enough answers.
Don't feel bad I have been doing that same thing. What kind of exercises are you doing? I have lost a little weight by playing racket ball every day and occassionally jumping on the Just Dance game. Hey it's a fun way to work out. Don't eat late meals so that it will sit on your stomach. I also drink lots of water. I may treat myself to one cup of unsweeten juice a day if that.
Bloated, you need to make sure there's no food allergies going on - particularly something like celiac (gluten intollerance).
You should also be screened for thyroid function, as less than optimal can make weight loss hard. Thryoid problems are also much more common with people who have diabetes.
For weight loss, low carb diet (calories depend on your size and activity level) is gerenally helpful.
Daily activity of at least 30 - 60 minutes / day is required also for most people to lose weight.
I have been riding a stationary bike 30 minutes almost everyday - I do Zumba once a week, as far as diet I have tracked it in my fitness pal and I seldom go over any of the guide lines they have set up. I do try and drink 6 glasses of water everyday, I know they say 8 but I think I'm doing pretty good on that. I don't drink soda or any other juices.
Thanks for you reply and good luck to you!!!