In our area most of the wrecks have a fair amount of old monofilament fishing line snagged on them. I have had to cut myself free of it a couple times, but that’s the only time I’ve ever had to use a knife U/W. I always carry two cutting tools, located at two different points on my body, so I have a better chance of getting to at least one of them if I’m tangled. My usual cutting devices are a trilobyte in a sheath bungied to my left wrist with my computer, and a folding knife in a sheath on my BP’s waistband.
I’ve never gone in for expensive dive knifes. I only buy the cheap $10 ones at the sporting good store. I buy two or three at a time and replace them when they get rusty. If a cheap knife drops out of my hand on a dive, I don’t risk injury trying to retrieve it. The folding knives with the large unlock button on the top of the handle work best with dive gloves. Something with around a 4” blade is enough for me.
I have found several expensive lost dive knives on my dives. Usually titanium. I’ve also found a few sheaths without knives. The last time I inquired, the manufacturer would not sell me only a sheath, so for diving they’re now useless. It’s a shame. If the owners had scratched or painted a phone number on the handle they would have gotten them back.
On a dive boat I once saw a young guy, probably a new diver, with a knife strapped to his leg with a blade that was at least twelve inches long. It looked like a samurai sword. Kinda funny, but I'm sure he liked how it looked on him.