At the end of the day it's just another depiction of Knuckles - it's not all that different than cosplaying his Sonic Boom version, or any other depiction we may have seen.
I've been trying to go back and check the history and origin of this meme, trying to decide if the avatar was someone messing around on VR Chat or if this version of Knuckles was created with the whole Ugandan thing in mind but I haven't managed to come up with anything concrete, it seems to be the merging of two occurrences on two separate videos?
Personally, I think the design is very cute (It reminds me of regular Reaper and the small chibified version which is insinuating that he's regenerating. Or Groot/Baby Groot, Nendoroids or Funko Pops which capitalise on the idea of making something small and out of proportion) and therefore I wouldn't mind someone cosplaying it.
However I would strongly advise removing 'knowing da wae' and the clicking from the table and don't do it in public in case you do upset someone. If anyone asks, just tell them that you enjoyed his squat new form and leave it at that.
If you're aiming to go full on 'Ugandan' then it'll be harder to get around the confrontation. I know that Knuckles and his people have a very tribal aesthetic surrounding them, but Knuckles himself doesn't dress in the attire of his people like Tikal for example.
Everyone has a different threshold for these things, and whereas I know actual Ugandan people who think its amusing, others may not and you do have to be prepared for some backlash or other people initiating things associated with the meme around you - those people could also upset others too depending on how loud they are.
Another idea would be to keep it as an idea for a Halloween party? It would probably be old news then and it's losing traction as a meme already.
I suppose you have to ask yourself why you want to make it and is it just an impulsive desire to make it. Could the money making this be better spent on something else you want to do even more?
Sorry I can't give a clear yes or no answer and for playing devils advocate a bit. I know that this is just a hobby to have fun but I also don't want any harm to come to you for enjoying it in your own way.