Help with YO's

My pattern calls for:
K3, sl 1 wyib, k1, *yo, sl1 wyib, k1; rep from * to last 4 sts, p1, k3.
2nd row: K3, sl1 wyib, *k1, k2tog: rep from * to last 4 sts, p1, k3.

The yo moves over the slipped stitch when I knit the next stitch. Then when I move to row 2. Do I knit the slipped stitch with knitted stitch or the yo and knitted stitch? Maybe I’m doing the yo incorrectly.
Ugh!

That is a tricky one. The problem you are having, I think would happen to any knitter.

I think the trick is to simply make a fairly loose YO, and hold that YO in place (to the right) when you slip and knit the next two stitches.
It appears that the YO is part of the k2tog on the next row, so it will go away and any slightly crossed stitches shouldn’t be visible/cause a real issue.

There is a slip 1 in between the yo and knitted stitch and when I go to knit the next stitch that’s when the YO crosses over the slipped stitch.
That’s also where I’m having trouble with which 2 stitches should be knitted together. Should the yo be knitted with the knitted stitch and the slipped stitch by itself.
In the picture of finished work there doesn’t seem to be any gaping holes in the pattern.

I am working this same pattern but I have another question. This pattern calls for wyib for the first 7 pattern repeats then it switches to wyif for 2 pattern repeats. I’m having trouble changing from the wyib to wyif and maintaining a consistent number of stitches, because when I do the exact stitches and keep the yarn in front it adds a couple of extra stitches on the row and there isn’t a way to incorporate them into the rest of the pattern. UGH! I keep thinking there must be something I’m missing.

When you bring the yarn to the front, be sure to move it between the needles. Maybe that’s the problem?
Can you give us the line in the instructions that has the wyif? It’ll help figuring out how to work it.
What is the name of the pattern?

Thank you so much for trying to help. The pattern name is Ethel and it is
in Deb Buckingham’s book “Dishcloth Diva Knit On 1”, The line in the
pattern is written in the first comment above that’s why I didn’t include
it before. Where it has the wyib just replace it with wyif for 2 repeats.

Pattern notes: When the pattern reads wyib, keep the yarn in back for the
entire row. When the pattern reads wyif, keep the yarn in front for the
entire row.

CO 44 sts.
Bottom border knit 4 rows.

Work the following 4-row pattern a total of 7 times, following the wyib
instructions.

1st row: K3, sl 1 wyib/wyif, k1, *yo, sl1 wyib/wyif, k1; rep from * to last
4 sts, p1, k3.
2nd row: K3, sl1 wyib/wyif, *k1, k2tog: rep from * to last 4 sts, p1, k3.

OK, I assume you’ve seen the errata noted on the Ravelry page.
Even though it says to keep the yarn in front for the entire row, you can’t do that and work the knit stitch at the same time. I assume what you want to do is hold the yarn at the back in general and then “slip one with yarn in front”, move the yarn to the back again (between the needles) and go on to the next stitch.
For row 1 slip one with yarn in front, knit 1, then to start the repeat, bring the yarn to the front between the needles and then over and around the right needle to the front again, slip 1, bring the yarn to the back between the needles to knit 1. Row 2 is more straightforward to work.
See if that maintains the stitch number and gives you the pattern you want.
Also, please edit your post to leave just rows one and two. We can run into copyright problems otherwise and we really don’t need the instructions on cast on etc., just rows one and two.

The extra sts appear when doing the yo’s in the wyif rows. This can be
evident when knitting the first row as written in the wyib without rep. It
will put 7 sts on the needle in contrast when knitting the first row as
written wyif without rep it will put 8 sts on the row. I am working the
yarn between the needles when knitting and slip sts. The errata on Rivalry
doesn’t address my question.

The first row without the repeat takes 9 sts and you would finish with 9sts. 3 knits + 1 slip st + 1k + the last 4.
1st row: K3, sl 1 wyib/wyif, k1, to last 4 sts, p1, k3.

The 2nd row
2nd row: K3, sl1 wyib/wyif, *… * to last 4 sts, p1, k3.
takes 8sts and would finish with 8sts.