Why does Knightsbridge University confer its own degrees?

Your post implies some sort of official recognition of Knightsbridge by Danish authorities by saying it was "registered in Denmark." This is unfortunate. Knightsbridge was not a Danish university, nor was it a university in any known jurisdiction on the planet.

It worked for you the exact same way a piece of paper from a diploma mill (or a laser printer, for that matter) works: almost no one checks. If they did check, they would find that Knightsbridge was not a university. It doesn't matter how much work you did or did not do for the diploma, it is not materially different than one you would get if you did no work and purchased it at a diploma mill (or, again, simply printed it up yourself).

Because you seem to know these distinctions, you're a co-conspirator in your academic fraud. Shame on you.