In case it helps, I'm leaving the description for the mod that fixes the knitting problem. Maybe by reading the description, the bug will be easier to find and fix. It also sounds like this might cause other bugs, so it's worth looking into.
This mod fixes the issue that prevents Sims from being able to resume knitting. On a technical level, the issue is with the get_resolver flexmethod of the Interaction class. Flex methods can be called on both the class itself as well as instances of the class, and for whatever reason, the interaction when attempting to resume knitting is not instance but rather the class itself. Because of this, there is no context field as that only exists for instances of the class. I simply create an InteractionContext for the interaction using the selected Sim and pass that to the resolver. There may be other interactions which cause this type of error, it's hard to say, but if there are, this would fix them too.