@tltt's research is always superb, but I had to check out this story for myself. I looked up the article in the November 2004 issue of
Tactical Knives. The new knife is indeed a very close rendering of the original, as you can see for yourself.
The original, called the LaRue Tactical Knife, was CNC-made by LaRue out of CPM-S30V (thus the choice to use this steel as an homage in the new LaRue Battle Knife). Karwan called out the fact that LaRue used CNC machining to make the knife because it was only the second company he'd seen use that still-novel manufacturing technique back then and he was very impressed by the results.
The sheath was a green Spec-Ops model. As good as Spec-Ops sheaths are, the custom-made, multi-material Hardened Silo sheath accompanying the new Battle Knife is much better and adds to the overall package. (Karwan said that the knife rattled too much in the Spec-Ops sheath, a problem eliminated by the Silo's design.)
The article alluded to the fact that the knife was favored by an unnamed Special Operations unit.
Given LaRue's early connection with the Horrigan brothers, that unit would be 1SFOD-D (Delta Force). Delta Force operator Bob Horrigan, a knife guy who constructed his own knives in his spare time, eventually made a very close copy of the LaRue Tactical Knife knife that he called his Military Fighter (now made and sold by his twin brother, custom knife maker John Horrigan).
According to a 2015 post by Mark LaRue on ar15.com, John Horrigan's only involvement with the LaRue Tactical Knife was sharpening a few of the knives while demonstrating the use of a new piece of sharpening equipment for LaRue employees. LaRue said that otherwise the knife's manufacture was "entirely in-house, from design to completion."
Karwan's
TK article didn't mention anything about the knife's choil or the Randall-in-a-skull story. That also came directly from another Mark LaRue post in that same ar15.com thread about the knife.
Chuck Karwan was a combat-decorated Special Forces officer in Vietnam. If he told Mark LaRue about such an event, I'm inclined to believe it happened the way that Karwan described it. Truth is often stranger than fiction, particularly when it comes to warfare.
-Steve