-the Current sense transformer (CST) cannot reset through the power transformer, as the power transformer is switched out by the fets when the CST needs to reset.
I don't believe the diode makes the CST saturate, because if it did, then the LTspice simulation would show the CST saturating. The LTspice simulation gives the expression for the magnetising current of the CST secondary, and if this is placed into the waveform window, you can then see that the magnetising current is not rising away into saturation.
So I do not believe that the diode makes the CST saturate.
(by the way, you can place the magnetising current expression into the waveform window by right clicking the waveform window, then going "ADD TRACE", then simply paste the expression given in the simulation into the dialog box}
The reset voltage required across the secondary of the CST in order to reset the CST is only about 9V. {remember that v.dt(on) must equal v.dt(off) for reset of the CST}.
If you refer 9V to the primary of the CST ,then its only 90mV. 90mV is not enough to forward bias the diode across the primary of the CST, so therefore the diode will be “invisible” to the reset pulse.