Yep, my mistake on the journal!
That still shows somewhere in the range of .003-.004" clearance. That is higher than recommended, but should not cause a knock that loud. There is a chance the bearing inserts are the wrong size from the factory. Otherwise you still don't have a cause for the knock.
The insert in your pic is a bit scored, but doesn't appear worn out.
Can you get a feeler gage up to the piston skirt? There is a chance the wrong size piston was installed in the bore. See if you can slip a feeler between the piston and cylinder, and if you can, see how large a feeler will fit.