PT. Dry needling for scar tissue.

I have been diagnosed with mild lateral Patella subluxation and patella alta.Also mild chrondomalacia Patella.I am going to PT for past 4 months. I have knee burning pain and Swelling on top &right side of the knee for past 6 months. PT tried 3 sessions of aggressive dry needling for thigh and upper knee area.that doesn't help too.i still have the same pain and Swelling.I also have some scar tissue in that knee.The scar is from my childhood and I don't remember the cause of the scar.i did have a stitch.My PT said that scar area looks so tight and he did dry needling for scar tissue.that was so painful and very sore even after a week.i did that last week and it's very painful till now.I see some instability and balancing issues in my knee now.i don't have that issue in the past 6 months.I am limping on that leg.whether the scar tissue dry needling cause so many issues inside the knee?I feel so instable inside the knee and not able to walk as before.I never felt this before.is it normal?