I was incorrect about the code, 4X4 HIGH, 43 is for the knock sensor, as you said. 42 is the code that's tripped when you unplug the connector to set base timing. Sorry 'bout that!
However, from the Haynes manual, 67-87 trucks:
"The ESC knock sensor, which is located on the lower right side of the engine block, sends a voltage signal of 8 to 10-volts to the ECM when no spark knock is occuring and the ECM provides normal advance. When the knock sensor detects abnormal vibration (spark knock), the ESC module turns off the circuit to the ECM. The ECM then retards the EST distributor until spark knock is eliminated."
and:
"Failure of the ESC knock sensor signal or loss of ground at the ESC module will cause the signal to the ECM to remain high. This condition will result in the ECM controlling the EST as if no spark knock is occuring. Therefore, no retard will occur and spark knock may become severe under heavy engine load conditions. At this point, the ECM will set a code 43.
Loss of the ESC signal to the ECM will cause the ECM to constantly retard timing. This will result in sluggish performance and cause the ECM to set a Code 43."
That said, I'm not trying to argue, just stating the facts as I read them. Maybe Haynes is incorrect, or later years operated differently, but that's what's in the manual.