Oh no! I can see that happening here.
On the needle, let it dry ALL the way first. Some of the wood fibers might swell when wet.
Once it's GOOD and dry, through and through, get the super duper fine sandpaper and smooth it good, then rub it with some wax paper. It MIGHT save it.
you might knit a small swatch of each of the yarns and try different enzyme based cleaners to see if they tolerate them. You could even put some chocolate milk on a swatch and see what works. That way you are experimenting with a swatch, not your knitting and will know before completing the project if there is hope for getting out the chocolate stains, if there are any.
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