Welcome to DF, CGAGE,
It isn't uncommon to see a T2 diagnosis changed into a T1 diagnosis, especially after somebody is 20 years old. This comes from when T1 was known as "Juvenile Diabetes".
Does your doctor have you on any sort of plan for injecting the humalog?
Red wine is actually seen as a benefit/curse to BG (provided you get dry reds) because it keeps the liver busy processing the alcohol, which allows the basal insulin (lantus) to work unhindered... I also said curse, because it can also cause low BG... YMMV
I don't know why your doctor has you on only 500 mg of metformin per day. I'm not completely positive on this, so we'll need an actual metformin user's input here... but I'm pretty sure that at very low doses, such as 500 mg, metformin has no effect on BG. Again, we'll have to wait for input.
Exercise will help, there is no doubt about that. You can pick low-impact exercises such as swimming to reduce joint pain.
Here's the kicker... you have to learn how to count carbs! That is the only way you'll be able to manage your T1... A "Buddhist monk cave diet" of "brown rice and fruit" is terrible for BG... the only reason it may be working for you is that you know how to count those carbs and can adequately bolus (take humalog) for them...
Bottom line, you need to learn how to count carbs and get your insulin ratios right! Otherwise, you're looking at more years of high a1c's...