"KNK ST RETARD" is the short term KR and should be ideally be 3 or below. 4.5 won't hurt the engine, but it will cause the PCM to pull timing to compensate (protect the engine) and you will lose power as a result. "KNK LT RETARD" should be zero when the car is properly tuned. In both cases, the car has knock sensors and will pull timing to protect the engine when it's detected. The only real detriment is loss of maximum power.
The advice to add more fuel is because knock is generally the result of running too lean which leads to detonation (knock). Again, it can't hurt the engine since it will protect itself.
"DESIRED FA CYL1" is the reading in closed loop operation when the PCM provides feedback based on actual data to adjust the fuel trim. "OPEN LOOP FA (AFR)" is what the car operates when at WOT when the system doesn't use actual data and simply runs on the programmed tables stored in the PCM.
For pure octane, the stoichiometric mixture is approximately 14.7:1. A stoichiometric mixture unfortunately burns very hot and can damage engine components if the engine is placed under high load at this fuel–air mixture. Due to the high temperatures at this mixture, detonation of the fuel–air mix shortly after maximum cylinder pressure is possible under high load (referred to as knocking or pinging). Detonation can cause serious engine damage as the uncontrolled burning of the fuel air mix can create very high pressures in the cylinder. As a consequence, stoichiometric mixtures are only used under light load conditions. For acceleration and high load conditions, a richer mixture (lower air–fuel ratio) is used to produce cooler combustion products and thereby prevent detonation and overheating of the cylinder head
In naturally aspirated engines powered by octane, maximum power is generally 12.5 to 13
Based on your readings of 14.77 closed loop and 14.53 open loop, you are running too lean and need to add more fuel to bring it down into the range of 12.5-13. The exact A/F that is best in your engine will be determined by "tuning" the fuel to get your ST and LT KR values into the desired range of not more than 3 for ST KR and 0 LT KR.
I hope this makes sense.