Those little knotted up bits sound like what I see in regular CVS cotton balls. Some folks theorized that they slow down the wicking but I've yet to notice it. I get the same wicking with cotton bacon as I do with Shen cotton pads as I do with CVS cotton balls. It just works. The only difference to me is that the flat pads like those are a bit easier to work with as I can simply cut them with sharp scissors and then peel them in half where with the cotton balls I've got to try to tear them in the right proportion for wicking, but then again.... I can screw up a LOT of cotton balls at $0.88 a bag and it wouldn't be a bother. As long as I predrip on the CVS cotton balls really well, I never noticed the difference in the taste of the first few vapes, they simply taste like my liquid should taste and after that they're already identical in flavor between cotton balls from the pharmacy and the more expensive beauty pads and cotton bacon.
Honestly, I think that Cotton Bacon is just an attempt to try to take wicking to the designer level and *some* people are quick to jump on it to be part of the in-crowd. I really just don't notice any difference at all, other than the first couple hits if I don't saturate the cotton balls really well but what's the issue with that, it only takes about 7 or so drops.
But if your taste buds are more refined than mine and CB works for you, then I say keep at it. Enjoy your bacon. After all, everything is better with bacon as I'm sure the designers of Cotton Bacon realized when naming their product.