Alternator Diode BaD!?

I went to Autozone and did a onthe car alternator test (bc my volt meter reads low). Stays its charging the battery but its only putting out 12V...so it could be the voltage regulator. Ok i go home take off the alternator put a new regulator on it, and take it to Advance for a bench test. "its charging the battery but the diode is bad". OK WTF does this mean? i need a new alternator?

Does me having the batt in the back cause this?

I"M CLUELESS :shrug:

Also i get voltage drop after driving...like when u first start it up cold it gets normal voltage...but after driving it it drops to the bottom 1/4 of the gauge.

? :shrug: