This is a unique interpretation. Treating Bone Density R1 (knucks work!) differently from Bone Density R2 (knucks no longer work) doesn't seem internally consistent. I'm not sure that the absence of an explicit damage stacking rule is enough to say "RAW doesn't support this." RAW does not seem to say either way, neither supporting nor disallowing it.
Perhaps some others will chime in with their interpretations.
That's actually not my interpretation at all, for what it's worth. None of them stack, you just use the best damage code available; a character with Rating 1 Bone Density still gets the +1 to damage resistance and still gets STR Physical damage when punching instead of Stun, but if he wears Knucks he can choose to inflict (STR+1)P instead of his normal unarmed damage of (STR)P.
A character with Titanium Bone Lacing still gets all the benefits of those and can still wear knucks, but since his unarmed damage code is already (STR+3)P wearing knucks won't do him any good because his bones are already more efficient than a simple pair of knucks.
At this point I'd like to stress the fact that this is my interpretation of RAW; nothing in the rules state that knucks should stack, unlike the Bone Spike from Hard Targets which explicitly does, and there is no precedent that I know of that supports this interpretation. The fact that knucks have a stated Damage Value means it's treated just like shock gloves or a monowhip combined with the lack of common rules for stacking damage codes leads me to believe that RAW precludes this possibility.
Again, though, not all GMs will agree with this interpretation, and I myself am in fact one of them; at my table knucks stack just fine with things like bone density or lacing, but I still think that's not what RAW says. Of course. I disregard RAW on a daily basis, so...
