I don't know anything about what Dr. Schulze would do, but our dog became bald as her diabetes got worse. One clue to her diabetes was a lump of fat just behind the shoulder joint, on the side of the body. She eventually became thin as a rail but that lump of fat was very noticeable.
When she was young, she used to bark and howl for us to give her fresh pears and apples and we thought it was cute. Later I realized that she was probably craving Sugar then because she was likely hypoglycemic even at that early time. Anyway, once a dog becomes diabetic, like a person, they're more susceptible to getting other problems, like blindness.
A systemic yeast infection might do some of what you're describing here. According to my internist, a systemic yeast infection of vital organs like the kidneys would cause a high fever.