Just to be clear, when I say that “Luke knew Josephus,” I mean that he knew his writing. Here is Richard carrier’s piece on the case that Luke used Josephus as a source.
Not as glaring as that one, but they exist, particularly in Luke-Acts. For instance, The first two verses of Luke 3 contain three factual errors.:
(Lk 3:1-2)
In the fifteenth year of the reign of Tiberius Caesar–when Pontius Pilate was Procurator [Gr. Hegemon] of Judea, Herod tetrarch of Galilee, his brother Philip tetrarch of Iturea and Traconitis, and Lysanias tetrarch of Abilene– 2during the high priesthood of Annas and Caiaphas…
- Pilate was a Prefect, not a procurator.
- Lysanias of Abilene died in 36 BCE
- Caiaphas was the only high priest at this time. Annas had been deposed years before. There was no tradition of dual high priests in any case. Annas and Caiaphas were never “co” high priests.
The Nativity stuff has been well worn around here, so I’ll skip it, but the same “historian” also made historical mistakes in Acts. In Acts 5:36-37, Luke has a character named Gamaliel talking about a revolt by Theudas which had not happened yet relative to the alleged setting of the story. “Gamaliel” is supposedly talking in the 30’s CE but the revolt he speaks of happened in the mid 40’s. Moreover, he claims the revolt of Judas the Galilean happened after the revolt of Theudas but it actually happened 40 years before.
In Acts 21:38, Luke has Roman commander ask Paul if he was the “Egyptian” who led a band of sicarii into the desert. Although Josephus does mention a “false prophet” called “the Egyptian” he does not associate him with the sicarii, who were assassins, not followers of prophets. In Jewish Wars, Josephus talks about the sicarii directly prior to talking about the “Egyptian” leading some followers to the Mount of Olives and Luke (who used Josephus as a source) probably conflated them.
I mentioned John’s anachronistic placement of the expulsion of Christians from the synagogues (aposynagogos during Jesus’ lifetime.
It’s also arguable that Mark might be wrong in his dating of the execution of John the Baptist, since Josephus seems to date it to 36 CE (but Josphus’ wording is ambiguous in this regard).
John Crossan estimates that 95-98% of the Palestinian state was illiterate during the time of Jeusus. The literacy rate was higher in Egypt, but I don’t know how much higher. It certainly wasn’t anything close to universal literacy (something that wasn’t very common anywhere in the ancient world).
The facility of Palestinian Jews with Greek is not known with certainty, but because the area had been fairly well Hellenized by the time of Jesus, it’s argued by some historians that the average Jewish peasant probably had some degree of Greek (much the same as you won’t have that much trouble finding cab drivers who speak English in Tijuana). Not many would have known Latin outside of Rome, though. Greek was still the Lingua Franca in the Roman Empire outside of Rome, and even the Romans used Greek in the provinces.