There is quite a bit of space for the steering quadrant to move up and down in its bracket, at least 5mm, so for minor adjustments that's fine.
After 1500 miles our top nut had slipped a little (despite the locking screw compressing the threads) and the quadrant was squeaking on the bottom of the bracket, which was soon fixed by tightening up the top nut to bring it back to where it should be.
So tighten up the top nut, see if your quadrant has enough room between top and bottom of its bracket and if any of this cures the knocking. It's quite possible it won't - maybe your bottom bearing is worn and needs replacing.