Don't outrule shot dampers as a source of knocking. I chased a knock for years and replaced the rack thinking it was that, but it was the dampers
Another source of knock is a worn out steering shaft UJ.
Anyway......if it is the rack, I got a Gen 3 from Power racks direct, think it was £450+VAT. Came with new tie rods and gaiters, so saves a few quid there. They won't want your Gen1/2 back as they're worthless, so there may be a £50ish surcharge on top. New from VW is almost car write-off. I got a quote of £1600+£110 (harness)+VAT. Plus tie rods and tie rod ends on top of that, so around £2300ish all in for the full works + fitting!!
On top of the rack you will also need a new harness (as above) from VW. No way around that unfortunately. Totally different wiring. Gen1/2 the steering angle/torque sensor is in the steering column or clock spring thingy thing, in Gen 3 it's in the rack itself, hence the harness difference. That isn't a bad thing as the Gen1/2 harness was sh1t anyway. Under sized power cables, which caused a momentary loss of power assistance under hard lock applied quickly, plus poor grounding etc.
Gen 3 is a big improvement in every way.
You don't need a steering profile flashing unless you find it too heavy. You will get an ABS fault code (have to reprogram it use the rack sensor) but that can be cleared with VCDS.
If you do need/want a steering profile, you need VW ODIS for that, so dealer or specialist with the right equipment.
I didn't bother with a profile, drives absolutely fine