Continuity mistake: Watch the scene where KARR engages in bank robberies. In one charge scene, KARR has the sticker job from Slammin' Sammy's episode, which it doesn't have at any other point.
Continuity mistake: To elude KITT, KARR ejected Tony to eliminate weight. A moment later, KARR is sitting still, and Tony is in the passenger seat.
Continuity mistake: When Michael drives by in K.l.T.T, if you look closely you will see that K.I.T.T has a normal steering wheel and a fake dash with no monitors. (00:32:20)
Continuity mistake: Throughout the episode, KARR has his own unique yellow voice modulator. However, when he is talking to the two robbers in their lockup and we see KARR mainly from the outside, the light flashing inside KARR as he speaks is red, suggesting that it is KITT (or at least the KITT prop, possibly filmed before the KARR's modulator was made or reused from elsewhere).
Continuity mistake: Throughout the episode, KARR doesn't appear to have a rear number plate as KITT does. However, in the shots of KARR smashing through windows/walls, he has KITT's ‘KNIGHT' plate.
Continuity mistake: Michael fights for his life on KARR. He then jumps to safety on KITT and gets into the car and goes chasing after KARR. The next scene has Michael back on KARR fighting for his life.
Continuity mistake: Watch KITT shoot KARR with the laser. When KITT hits the laser on KARR one of his headlight covers blows off but then returns.
Answer: KITT didn't choose to go off the cliff in Goliath Returns, it just happened as he tried to avoid Goliath. Just 'cus it happened, doesn't mean It's gonna cure his fear of "flying"