Knight of the Drones (1) - S3-E1
Other mistake: When Dr. Hallsten fires the rocket from behind the grill of the car, he uses the red plastic switch cover to launch it, not the actual switch.
Other mistake: The chemicals in the pool eat the seats, including the metal hardware, the steering wheel, and all the electronics, but the tires remain intact, and inflated.
Suggested correction: Molecular Bonded Shield protects KITT's exterior including tires, while his interior isn't protected. Therefore, his tires haven't been destroyed by acid.
Other mistake: When KITT is heading off the two goons, he starts to chase them. As he does, you can see the hood behind the driver's seat, hiding the stunt driver. Also, when KITT is dropped into the pool of chemicals, you can easily tell that it's a model in a miniature set.
Other mistake: Just after Michael finds Devon in the trailer, as he gets in K.I.T.T you see him put the gear into D and then he reverses. Then it shows you him putting the gear into R and then drives off. Looks like they got the footage the wrong way round in the edit.