You could dig out that knot and fill it, then rasp out a long shallow scoop and patch it. I've got away with that sort of fix on a few bows.
I sometimes feel an awful lot of bows get scrapped when they could be fixed... not all problems are "mistakes" we are working with imperfect materials.
I'm currently working on an 80# Yew warbow, there's an odd patch on the back where the sapwood rings get incredibly fine and dip down, maybe it was rubbing on another limb, anyhow I had little choice but to violate a lot of rings over a very short distance, so I just rasped it down about 1/8" and overlaid a bit of matching sapwood, barely visible and doubtless stronger. I don't see a good fix as being any "worse" than making a laminated bow, after all a laminate is jost one loooooooooong patch
Del