I know this is not a direct solution to the problem you are having. But nonetheless I will suggest it:
Have you considered using the default studio editor and manual package managing? Roblox isn’t exactly the most complex platform. And using knit or a package manager seems like overkill for most of the purposes.
Most likely the cause is a fact alone of questionable usefulness of package manager on Roblox. ProfileStore is not available on Wally. Neither is Knit.
You also need to consider replacing Knit with a more modern solution, either from somewhere or to make it manually. Luau provides its own typing system, and Knit wasn’t updated to support it.