You need to make sure that you are handling the hidden modal event so that you can clear the observable. Then, the next time you set it to true , it will notify all subscribers as it has actually changed (observables do not report when their value is set to the same value).
Something like this in your init:
init: function (element, valueAccessor) { $(element).on("hidden", function() { valueAccessor()(false); }); },
If necessary, you can use ko.isWriteableObservable to determine if the value passed to the binding is actually observable, which you can write.
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