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Apparently, "cloven leek".
From Middle High German knobelouch, with dissimilation from Old High German chlobalouh. The latter part of the word is, of course, Lauch (“leek”). The first part originally pertains to klieben (“to cleave”), but was later adapted to the large group of terms for thick objects beginning with kn- (cf. Knopf, Knoten, Knolle, etc.). The same in Dutch knoflook.
Another explanation from aglicrudo.it:
The German name of garlic is Knoblauch and cognate with Dutch knoflook; short forms in regional use include Knobi, Knofel and the Yiddish form knobl [קנאָבל]. Folk etymology holds that the first element knob- relates to knot (because the leaves of garlic are frequently tied together to improve growth of the subterranean parts), but in truth, the initial kn cluster evolved from dissimilation of earlier kl (Old High German klobalouh, Middle High German klobelouch). That element belongs to a verb stem klieb-, meaning split (cf. English cleave); deriving from Proto-Indo–European GLEUBʰ cut, carve, peel, it is related to Greek glyphis [γλυφίς] notch, mark and Latin glubere peel. The second element -lauch is, of course, equivalent to English -lic.