As I see it. The knot is far enough back to not be a problem for the strength of the project. However the depth of the knot could be a problem. I think it would be wise to carve the stock way oversize first and then make the decision to use it or not. If there is a big hole underneath there could be a problem. I have fixed and used such stock material before for a client.

Dennis Earl Smith/Benefactor Life NRA, ACGG Professional member