KFB of stitch

I made a classic grandma’s favorite dishcloth,but instead of doing the yo, I kfb into the third stitch. On decrease, I k1, K 2 tog, Kfb, and then k 2 tog. Somehow, I ended up with holes anyway, not huge ones, but it is not the effect I wanted. I was hoping to just knit a square diagonally- What did I do wrong, or did I just use the wrong type of increase?

I like the eyelet holes on the edges but if you want to leave them out. just work the decreases without the kfb. On the decrease edges, k2tog at the beginning of the row or one or 2 sts in from the edge and then knit the row.

Here’s the basic pattern with eyelets for reference:
http://anewtwistondishcloths.blogspot.com/2005/07/grandmothers-favorite-original.html