Yes, obviously they knew about the video - but, none the less how on earth did they expect to get away with the lie that the video caused this... when they also had to know that there were NO DEMONSTRATIONS going on anywhere that were already claimed by foreign demonstrators to be the cause of their actions?!
What happened in Cairo was more in the nature of a demonstration, in keeping with the video meme. They wanted it out there to forestall any connection to a terrorist attack on 9/11 during Obama’s watch.
Later, realizing the difficulty in blaming Benghazi on the video, they peddled the 75K advertizement to Pakistan, knowing it would set off a few firebrands there.