Yes, this is supposed to be a female Michael Knight. And no, KITT's still a guy.
I'm writing a Knight Rider/Hyperdimension Neptunia crossover AU called Knight Rider Re;Birth. Michelle and KITT go around Gamindustri solving problems that are too big for your average guild quest, but too small to get the CPUs involved. Kei plays the role of Devon Miles, because Michelle and KITT work for Lastation in particular (Lastation built KITT, and Michelle is a Noire worshipper).
The last picture, which is just a repeat of the first picture except with a purple tint, is a reference to the intro sequence to Knight Rider, where half of the intro is tinted purple to give you the impression that it's dusk.

Michelle Credits:

-TDA: Base Edit by PrincessSkyler
-Tda-Style Short Hair by Maddoktor2
-Simple Short-Shorts by Tehrainbowllama
-Off Shoulder crop top by AneCoco
-Heart Shoes by amiamy111

KITT Credits
-Base model by jesuuss and Spartan-743, but HEAVILY edited by me using the PMX Editor, Blender, and Metasequoia.