I like the idea that there is some sort of thread manipulation going on here, but the videos using this for knitting don't require it to be a dodecahetdron as they only use one hole and five of the bulbs on the verteces.

Unless there's a much more complex knit happening, this isn't the explanation. Maybe with multiple colors or something. Also, if it were used in this common way, it's more likely that there would have been many more made of wood and the device would have passed down from mother to daughter rather than having been lost.