I wouldn't say that information is an upper bound on knowledge because we don't measure knowledge in bits. The number of possible sequences of N bits is 2^N and knowledge involves selecting the sequences that are useful in some way. I don't know how to quantify it, but in principle it could be much larger than N.

I don't think I agree with your characterization of the second definition. Time scales matter. It's not much use to be able to solve human-scale problems if it takes millennia. And it only takes months to train an LLM to the level that it can solve cutting-edge math problems.