That divet that you see is where the knot was when the stave was split. It's the grain actually growing around the knot. That's pretty typical and I get that all the time. You just try and work around it gently and do your best not to grab too much meat with your draw knife when you get close to it. I normally just use my rasp when I get close to an area like that and go slow, cause it's too easy to make a big mistake with a draw knife on places like that. Don't worry though, it will tiller out just fine.
Just take your time, and use lots of patience.
For pin knots I work up close to them, then just go around and keep on chasing my ring. Then I'll come back to them later and finish chasing the ring up the side of the knot with my scraper. It's like scraping dirt up an ant hill, just keep working up the slope and push the ring off the top. Try not to cut the tops off when your on the ring you intend to keep, cause it could check on you at the knot area if you slice the top off.