While assessing the nails of a client with diabetes, the nurse finds that the skin on the client’s hands and feet are dry due to infection. what could be the reason for this dryness?

In a diabetic patient, the high level of blood glucose can damage the nerve causing neuropathy. The diabetic patient might get dry skin because the neuropathy happens in the autonomic nervous system that was regulating the skin glands excretion. 
Other things that can cause dryness would be soaking your skin in warm water.