To cold for diacetyl rest?

Doing my first lager, 34/70 yeast. I went 5 days at 50 deg. Stilll had krausen but airlock activity had stoped.Let temp rise to 62 (floor temp) Airlock activity started up even more than at 50, looked like maybe even more krausen. After 2 days airlock activity stopped and krausen had fallen. I took a gravity reading and hit FG of 1.007
BUT
I have a ton of butterscotch flavor. My first taste of Diacetyl. I gave the buckets a light spin to rouse yeast a bit. Now I have a bubble here or there.

So my questions are:
Is 62 to cold for a good Diacetyl rest?
Should I raise it up to 65-68 for another 2 days to help clear it up or is it to late?

Raising a few more degrees would probably help, definitely can't hurt.

It will eventually clear up regardless of temp, however diactyl moves very slow at cold temps. So raising the temp will help, and it is definitely not to late

I'll second that.
Clearly the diacetyl is NOT cleared up, and while more time could do it, your yeast are probably getting tired and are about ready to go to sleep.
If you can bump up the temp to around 68 for 2-3 days, you may be doing yourself a favor.
You could always inoculate with more yeast too, if you think yours are pooped out. I would do this with a smack pack, which is essentially a mini vitality starter and pitch it about 4 hours after smacking. I know you used 34/70, but Wyeast makes an exact equivalent (though I forget the number).

But start with a temperature bump - that's the easiest thing to do.