Cryptic crossword clue
Degenerate knight in here, all agitated 8

The most common and most likely answer to this crossword clue is the 8 letter word RAKEHELL

I've seen this crossword clue in Financial Times
R
A
K
E
H
E
L
L

Buddy explains!

The straight part
We know that "Degenerate" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case degenerate = rakehell.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does RAKEHELL mean?

RAKEHELL noun
  1. A lewd or wanton person; a debauchee; a rake.
RAKEHELL adjective
  1. Immoral; dissolute.

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