You can have both App Engine and Kubernetes Engine in a single project, 
however it is recommended creating a new project for this alpha program.

Knative is the most suitable approach when you want a serverless App Engine 
Flex-like experience, be available on every cloud (multi-cloud), hybrid, 
and on-prem setup. The goal for Knative is to fill that need, especially 
for people that already use kubernetes. 

Knative is on top of Kubernetes and is currently available in the alpha 
version 
<https://docs.google.com/forms/d/e/1FAIpQLSdG5cCIiHhkW7srw9MWvdiLEsLXwJES1R3lnKgAn-opy3_iuQ/viewform>,
 
but App Engine is a solid GA service that provides a fully managed 
experience and runs enormous services.

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