96mg/dL is not outright diabetes yet, but it’s borderline, hence your doctor recommended for you to control your diet instead of starting you on medication immediately. Just follow the chart well to ensure that the glucose levels remain good throughout your pregnancy, so as to protect your baby:) I don’t think the progesterone causes any problem. If anything, it helps to stabilise the pregnancy in the first trimester. Your doctor’s trying to ensure that baby stays safe:)