Put race gas in the car and see if it goes away or gets better. If it does then its real knock. If it doesnt then its false knock (or torque management induced kr). When the PCM sees KR it pulls timing no matter if its real or not. If the knock sensors are not active then the PCM won't pull timing and that may be why the car runs strong in open loop.

That looks great when there'* no KR!

It will be nice to get the bottom of the KR issue and feel that everytime, won't it?

I would have to say yea, it would be nice.