There is nothing wrong with this, and this is totally correct and logical. Your WG tunnel is up and has traffic according to this:
The cause why you cannot SSH from the KNOT to the Edge (I assume using the IP address 10.168.12.1 as SSH server address?) is probably in other part of the KNOT's configuration, maybe the routes or firewall rules.
You should post the redacted configuration export of the KNOT following this guide: Forum rules - #5 by gigabyte091