Hi!
I took my time and figured out how to make the tuya smart knob work smoothly with dimming lights and happy to annouce it’s possible!
Here’s my manual on how to get it working: TheUnlimited64/tuya_smart_knob_blueprint
It requires a little change with zigbee2mqtt due to not having the property exposed into home assistant.
But with that change we’re getting a positive and negative value when dimming. The event mode is very slow to respond, command mode is way better.
Maybe someone can create an even more advanced blueprint than mine (was a pain to get it working lol).