No need to seal the knots when varnishing/ stainning. The reason we seal knots is to stop the resin bleeding through and discolouring paint. This wont be a problem with clear or stained varnish as any bleed will be same colour as varnish and wont be noticable.. Though if you have resin seeping out of knots (highly resinous) it's a good idea to wipe over them before applying anything, with a rag soaked in meths, which will take away the resin..
Thats a waste of good meths...lovely and refreshing on a hot summers day!!
I once went to price a job where the owners of a new house had heard they had to knot all the woodwork first..technically true, but only if its being painted..and not varnished which is what they had planned!!!
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