Covering FUT scars for people with type 1 diabetes?

There is no reason why you cannot have Scalp MicroPigmentation if you have diabetes (type 1 or 2).  See a doctor for a proper exam and understanding of why you were refused. 

I see no reason for you not to be able to get pigmentation if your blood sugar is in control. Visit with a doctor who does this and discuss it with him. 

I have done a ton of scar revisions with good results.  There are 2 general approaches.  The first (more common) is to re-excise any area of wide scaring and close with a special two layered trichophytic technique using A-cell which nearly universally leaves no visible scar.  (Strict blood sugar control will be important in your case).  For other parts of the scar or for any scar that results from the revision we implant single grafts extracted by FUE.  The second approach is to just do FUE implants into the scar where needed.  Both techniques are generally very successful.  Happy to consult with you if you like.  I've made many patients very happy using these methods.