I can’t knit, and hate artificial fibres. Oddly, some people who know me fairly well got me a kit with acrylic yarn and a knitting pattern for a baby outfit & blanket. (I’m pregnant.)
I thanked them, noting, though, that I couldn’t knit. I wrote something to the effect of ‘It’s an intimdating box!’
And got a reply expressing happiness that I’d liked the present.
Anyway. It’s likely going in my pile of "stuff that will end up at the baby consignment store."
But what do I say about the baby being minus a knitted jacket &c? The odds are excellent that it’ll be asked about.
Sounds like a close friend. Weird that they would buy something like that if they know you don’t knit.
So, I would keep the stuff, just in case, so if they say anything, simply say "You know, I never could figure that out. Knitting is just not my thing, but it was sweet of you." and drop it.
If they offer to make it for you, give them the pattern back and thank them. Chances are they won’t make it, because I’m thinking an avid knitter would’ve made the stuff for you in the first place. And hopefully by the time they get it back to you, you will have a toddler and not a newborn, so you can just put it in their memento box, lol!
Just a guess, that’s what I would do. No sense pretending you are interested in doing something you don’t want to do, but no sense in hurting someone’s feelings either.