Don’t get knitted is an expression used by teenagers to express disgust or surprise. Knit has many definitions so is interchangeable as the situation depends.
12 step recovery jargon referring to someone new who talks about how great life is, now that they'resober. Usually meaning that the person is out of touch with reality.
The new guy seems pretty happy for a dude who has no job, no money and no family. He must be on a pink cloud.