I think it's too quick to blame the knock gauge. For it's my understanding that the knock gauge "sees" the signal off the knock sensor rather directly, and the scanmaster sees the ECM's reaction to alledged knock.
So, both are right and neither should be ignored. I think it's more of how far upstream (if you will) either is getting information.
My TTA will register 1-2 green lights on the Casper's whenever I rollover this one bridge expansion joint here in town that I drive over allot. Yet the scanmaster will not register any KR to that incident.
So, the gauge is registering knock, maybe albeit the downpipe rattling and the ECM does not register the same incident...or ignores it.