Mark also played on and produced Infidels, released in 1983.
I found some words about it:
Knopfler later admitted it was difficult to produce Dylan. "You see people working in different ways, and it's good for you. You have to learn to adapt to the way different people work. Yes, it was strange at times with Bob. One of the great parts about production is that it demonstrates to you that you have to be flexible. Each song has its own secret that's different from another song, and each has its own life. Sometimes it has to be teased out, whereas other times it might come fast. There are no laws about songwriting or producing. It depends on what you're doing, not just who you're doing. You have to be sensitive and flexible, and it's fun. I'd say I was more disciplined. But I think Bob is much more disciplined as a writer of lyrics, as a poet. He's an absolute genius. As a singer - absolute genius. But musically, I think it’s a lot more basic. The music just tends to be a vehicle for that poetry."
Knopfler said about the instrument he plays on Infidels: "I still haven't got a flat-top wooden acoustic, because I've never found one that was as good as the two best flat tops I ever played. One...was a hand-built Greco that Rudy Pensa, of Rudy's Music Stop lent me. I used...the Greco on Infidels."
"Bob's musical ability is limited, in terms of being able to play a guitar or a piano," said Knopfler. "It's rudimentary, but it doesn't affect his variety, his sense of melody, his singing. It's all there. In fact, some of the things he plays on piano while he's singing are lovely, even though they're rudimentary. That all demonstrates the fact that you don't have to be a great technician. It's the same old story: If something is played with soul, that's what's important."
In later years, Knopfler claimed that "Infidels would have been a better record if I had mixed the thing, but I had to go on tour in Germany, and then Bob had a weird thing with CBS, where he had to deliver records to them at a certain time and I was away in Europe...Some of [Infidels] is like listening to roughs. Maybe Bob thought I'd rushed things because I was in a hurry to leave, but I offered to finish it after one tour. Instead, he got the engineer to do the final mix."
On Youtube there is video of Dylan and Mark playing the songs Licence to Kill & another which i can't remember now.
Nothing in the world prepared me for your heart, your golden heart.