Not hidden in the knitting in the sense of the specific stitches (which is also very cool: https://www.popsci.com/story/diy/secret-code-messages-knitti...) but it seems she needed the knitting needle to insert the one-time codes (on a piece of silk) into a shoelace. Amazing story.
That was my first thought too. Different stitches such as knits and purls could serve very well as dots and dashes. Maybe that could've been too easily spotted.