Disabling ECS knock sensor on 3800 engine?

I've got a 95 Olds Silhouette with 3800 engine. Recently it's lost power and a diagnostics place says the knock sensor (Electronic Spark Control) is
"hearing" a very slight internal knock at 2000 rpm, misinterpreting it as spark knock, and retarding the timing 15 degrees ..with significant loss of power.
They said nothing can be done and mentioned maybe "a replacement engine".
They've got to be kidding. Some computer system is accidentally retarding my ignition timing and I'm supposed to replace the engine ..or scrap the car out??
Anyone have a less drastic solution?

If you are lucky it could even be external. Switch to highest possible octane and see if you get the same result. If you do than yo probably have a mechanical rattle somewhere,.Tighten everything including the knock sensor mount. Get a second opinion. I get a feeling that someone is try to sell you an engine and get your good one in the deal.

I would more suspect that the knock sensor is loose/improperly torqued, or bad..

i have a 91 olds delta 88 with with 3800 v6 beware the crank sensor and cam sensor input to ignition module crank sensor detects timming. cam deter valve closeure plug firing and fuel injection.my olds timming has been advance 26 degrees for last two years.does not hurt a thing.point being it is a very good possiably your ignition or half of the module is malfunction.my scand tool tells me cam sensor bad i repaced it twice.what did not make sense was the book says if either of these sensor are bad engine not suppose to run and it does,thats when i start looking at the print and found the ignition module is only half working.car runs great gas mileage rubber pealing appeal my get up and go walks away from mustangs and most suppose fast cars leaving them in dust. timming why bother thats why i do not fix.lack of power i would fix in your case.