From the 1930's (circa). Refers to a person of questionable intelligence. The size of the brain being given relative size of a human knuckle. Similar to pinhead.
That guy just sat on a bench with wet paint. What a knucklehead.
Engine produced by the Harley Davidson Motorcycle Company from(1936 to 1947). The engine consists of an overhead-valve v-twin design with covers on the valves that resembled knuckles, hence the name of "knucklehead".
Mike's knucklehead got repo'd after he missed his second payment