If the twine tension (set in the twine bale box), is too loose, the knot can fall off the billhook during bale compression by the plunger. This is just a friction issue that you can check by hand or with a fish scale.
This is something to watch for in slow motion. Turn it over by hand without any hay or twine loaded. Trip the cycle by hand and spin it over until the needle lift starts. Then carefully turn the flywheel a degree (angle) or so at a time to watch the billhook spin, the billhook finger open and the wiper arm traverse the billhook. This 'ballet' happens very quickly and is best arranged to happen in both knotters at the same exact point in the cycle. I don't agree that the manuals omit these details. My 14T manual describes this in excrutiating detail.
Now that its warmer out, I ought to drag out the baler and video the knotter action detail in better perspective than my last YouTube experiment....