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Is it a bad interface in v0.3.5? Yes, for sure. Knots was shoehorned in to an OS that isn't receiving any more updates, and the result is that you can switch between Core and Knots without having to resync the entire chain, but the interface, especially wrt updates, is more confusing.
The fix, which you can try now, even though it seems like you'd rather just bitch about v0351 in a thread about v040, is to upgrade to v040:
https://docs.start9.com/start-os/0.4.0.x/update-040.html
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Love the community here, it's like one big dysfunctional family!
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So in the 'Marketplace' Registry there is only a 'Bitcoin Core' app. When i have that registry enabled I see that the Bitcoin Core app is installed (version 29.3). When I switch to the 'Community' Registry there is only a "Knots" app, no Bitcoin Core, which is also listed as installed. In each case the version is listed as v29.3.0, which was the latest version of Knots...
This is why I thought it was actually Knots running instead of Core but I ran some RPC commands and traced through the Knots code a little and I THINK its actually core running and not Knots.
The version info comes back as:
/Satoshi:29.3.0/Knots source also says Satoshi but also includes more stuff so it should look something like:
/Satoshi:29.3.0/Knots:20260210/, from what I can tell reading the code at least.