what you’re describing does not sound like timing retard alone, it may be timing retard with some misfires, or some other issue, but by itself timing retard is “more” linear in feel than an abrupt cut. It’s not completely linear, but not binary.
You’re 100% correct not to mod the truck while it’s exhibiting this behavior and correct to remove the k&n before going to the dealer because they will absolutely point their crooked little fingers at the filter as the cause.
Just to clarify, @Fordza1 said the k&n was the worst -at filtering- that is, keeping debris out of engines, but they typically flow as good or better than the stock piece, but you sacrifice filtration to get more flow and that flow may not help if the air filter isn’t a choke point in the intake system. I would think it would be a poor choice for off roading, especially in super dusty/dirty environments.