How did Knots Landing explain Bobbys return?
They didn’t. Bobby’s death resulted in a couple of major Knots Landing plotlines, including Gary reevaluating his whole life and Val naming her son Bobby. Knots Landing were furious that Dallas did not consider them when the dream idea came about, so Bobby remained dead in Knots Landing and the two shows completely severed ties from then onwards. Do people actually like the dream idea? Yes many do, in fact many Sci Fi fans love it, some have theories that the Dream was a Dallas parallel universe where Bobby died and in that universe he is still dead. Some feel it gave us an opportunity to see a Dallas with Bobby dead which we would never have seen.