Oh huh! I had thought the knighting ceremony was like, interrupted before it had a chance to work, or something. But your reading makes the "She could stay, where everyone knew just how to teach kids like her, just what temperature she thought soup should be served at, just how she'd like her hair cut, because for two hundred years, these things had all been just so, and she was just the same." line make a lot more sense. I had been kindof confused at how she was just like them when she hadn't been knighted, and was like "did she just somehow inherit a lot of familial resemblance despite not being knighted?". I think your reading is probably the correct one.