The CBE is not a knighthood, it is an award. The U.S. Constitution (Article 1, Section 9) states the following:
“No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince or foreign State.”
Weinstein, as a private citizen, can accept awards from a foreign country. The British Crown and/or Parliament can choose to issue awards as they see fit.
Even for government employees, the Congress has passed appropriate legislation to them to accept awards and decorations from international agencies and foreign governments. The U.S. in return routinely presents awards to foreign military and civil servants for service that benefits the U.S.
In the UK Knights are not noble. The nobility begins with Baronets and includes Barons, Viscounts, Earls, Dukes, etc.