Actually, there are several knots that represent awards that are not "earned".
Silver Beaver
Silver Antelope
Silver Buffalo
Medal of Merit
Honor Medal
District Award of Merit
OA Distinquished Service Award
etc...
If people would like a knot created for Vigil Honor, great, more power to them.
Also, as a Unit Commissioner, I see nothing wrong with pointing out a gross error in patch placement, if it is done discreetly, to not cause embarrasement, in a friendly, helpful manner. If the uniform wearer chooses not to correct the mistake, well, at least I pointed it out to them and it is their decision not to change it. I feel setting a proper uniform example myself and saying nothing about anyone else is usually the best policy to keep.