The way I heard it, the original idea was that he should just wear an ordinary scarf. They gave some wool to someone in the props dept with instructions to knit a stripy, multicoloured scarf. The lady mistakenly used all the wool, which wasn’t the actual intention. but when the producers saw the scarf, they loved it. Really, just a lucky accident.
Subtle dialogue and interactions in certain multi-doctor eps suggest that they do recall, simply finding the situation (and the person) distasteful. The Two Doctors with #s 2 and 6 come to mind.
I recall an incident with the scarf–I think it may have been in the episode “Ark in Space”–in which an automated defense device burned a hole in the scarf. The Doctor looked at the damage mournfully and said that the scarf had been a gift from Queen _______. (I don’t recall which queen, particularly, but it may have been Queen Victoria.)
Can anyone else verify or elaborate on this?
It was Madame Notradamus – “a witty little knitter”.
The inspiration for Tom Baker’s costume actually came from a famous Toulouse-Lautrec poster.
Thanks for the correction–it’s been over 20 years since I’ve seen that scene, but it was quite clear right up until the point where he named the knitter. Frustrating, that. I’m not sure quite where I got the notion it was a queen, though.