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As others have posted, the holes are for snap ring pliers. Normally you orient the knob in the correct direction and tighten the lower half upwards to secure it in place. Once you get a good grip on it or use the pliers, it should loosen right up. When you get it off, you'll see that the holes don't go right through to the threaded bore, so even if someone managed to put a tiny set screw in there it would have no effect.
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Tropical Buzz
Grant me the serenity to accept the things I cannot change, the strength to change the things I can, and the wisdom to know the difference. -(wasn't me)
BEWARE OF THE DOGma!! Dogmatism bites...
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