Unless you want the new work to be free-floating, do not debond the dowels. If you need to debond the ends but maintain alignment, then wrapped or sleeved is common. Greased works until it doesn't, due to corrosion or too thin a layer/getting rubbed off during concrete placement. Also, make sure the dowels are exactly parallel to the vector of movement you intend to allow and are parallel to each other, otherwise they will bind and restrain the concrete.
In your 42" tall knee wall, you will need to prevent rotation at the base unless it is otherwise restrained. The most common way of doing this is to drill into the supporting structure, and install deformed rebar dowels using adhesive. Carry the dowels either one development length, or in your case, the full height of the wall.
I don't see a place for debonded dowels at the base unless the wall is purely decorative and supported by other structure.