Alright, so last week I was able to do another water test after putting the carb back on. The new jets didn't make any noticeable difference, the knocking sound still remains under engine load. So I was a bit disappointed to say the least, but athe least I know it's not a carburetion issue.
Then I did some digging on the forums and came across someone else who had the same exact symptoms going on, so I posted the link to the thread below. Now I'm curious if my problem is indeed a head gasket (or similar), which is what fixed the problem for the OP in the other thread.
I also conducted both a compression test and a leak down test.
Leak down test results:
Cyl 1.* 11%
Cyl 2.* 28%
Cyl 3.* 17%
Cyl 4. 9%
Cyl 5. 9%
Cyl 6. 9%
Compression test results:
Cyl 1.* 140psi
Cyl 2.* 120psi
Cyl 3.* 152psi
Cyl 4. 160psi
Cyl 5. 157psi
Cyl 6. 157psi
I think my best course of action is to remove and inspect the cylinder head. I'll be looking closely at cylinders 1-3.