applique is done on the quilt top- before sandwiching and quilting- so you don't have to worry about it- your knots are on the back of the piece- will be inside when your top becomes a quilt--
burying the knots is when hand-quilting because you might be in the center of the quilt starting a line of stitching- you do not want the knot on the top of your quilt- you don't want it on the back of the quilt- you must bury it--
quilting and appliqueing are 2 different animals