The knock threads into a water passage in the block.
In the old days that was just a "block drain" for the coolant.
There is another one on the other side.
If it is stuck, all kinds of corroded crud has accumulated on the end of the knock and is preventing it from backing out.
Be gentle, put a six point socket on it and rock it back and forth.
It was installed from the factory with thread sealant on it and combined with rust and crud, the end that is sticking into the block is now larger than the hole.
Move it back and forth gently while gaining a bit each time.
And dont be afraid to give it some heat
A MAP gas torch works well.
It will pee coolant on you, if it doesnt, its plugged full of crud.
Stick a wire in it and bust the crud loose.
And put a brand new knock sensor pigtail on it.