That is stunning those kind of bags are the best because its looks like it uses up lots of scrap yarn (like the one I made for my sister) so they arent too expensive.
I used the Drops Alaska yarn (£1.90 per ball) knitted on huge needles (size 10/11/12) and then felted in the washing machine.
The linings were machine sewn then hand stitched into the bags.
I did give up knitting then felting and started felting old jumpers bought cheap from car boots etc. I would cut into strips/square and patchwork together before making into a bag, i’ll find a pic of my fav....