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6y
I had to laugh at the 'wine free increases' :-DDD I think both techniques are ok, as you will sew the squares at their sides and I guess that the "untidy" stitches are not visible after sewing. But I am not a big blanket maker, so I am no real help here. And as I am lazy I would use the technique which is more comfortable...
RE: Diagonal Knitting - two stitch options tried and tested