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There's lots of logic to all of the responses that forum members have already posted above. Here's my .02 centavos:

1. Route selection. See #2 below; it sounds as if these 2 guys are living in proximity to you, or at least along the route you walk your dog. If you know where they live, or the dogs are they don't want photographed, then select a route that avoids these areas. I'm quite certain someone will pipe in with a "... shouldn't have to modify what we do to avoid miscreants...", but in the real world we make decisions, & will have to live or die by those decisions. (You can ignore this advice, or not. Unless there's a legal requirement for you to avoid the area you can generally go where you please. However, tactically sound decisions can help you avoid trouble in the first place).

2. "Trashy neighbor gets his feelings hurt over nothing". This description gives me the impression that they are your neighbors, or live in the neighborhood. If so, have you had any further interaction with them? You also said he stated he'd call the police if he saw you in the area again, so I could be off on the proximity thing, as he seemed to view you as an 'outsider' on his turf. Regardless, if #1 can't work then there's a likelihood you'll encounter them again.

You posted that this incident occurred about 6-weeks ago. From your tone, it's still pretty raw in your emotions. (Understandably so, the guy with the knife possibly committed aggravated assault, at least a terroristic threat as defined in the penal code). However, your tone & language ("trashy neighbor") also hints at a slightly lack of maturity. See #4 below.

3. Notify the police. The interaction you describe with the first guy wasn't normal, but unless he threatened you may not have been worthy of a police report (heightened situational awareness definitely). However, when approached by the second guy (even without a knife) would have elevated concern in my mind, probably enough to warrant a call to the police (2x guys acting aggressive towards you, hypersensitive to possibility of photos being taken of their dogs). It sounds like you were successful in de-escalating the situation, so kudos on that. However, if you had reported it immediately there would already be a police report (and if police had looked into the matter there may have been an underlying reason they were acting squirrelly). It's also important for law enforcement to know of incidents from a criminal intelligence perspective; if they see an uptick in certain crimes in certain areas they can shift their limited resources to address emerging trends.

4. "Teaching someone a lesson" / "gets neutralized". This isn't why we carry. We carry in Texas for self defense, defense of a third party, or in limited circumstances to protect property. This will be covered in the LTC class, and I encourage you to pre-read the CHL-16 handbook prior to taking your class. Also, you can use the search engine on this forum; I've been mighty impressed with the wealth of knowledge on here, especially so when the relevant statutes are cited so you can continue with self development.

Also of note, most predatory humans don't think like domesticated humans. Most of us have learned to live within society's norms & laws; some live & think outside of our 'normal'. The reaction you describe from these two guys aren't what I would imagine from a reasonable, sound person. That's an indicator. (Were there even other dogs present?). The reaction I'd imagine from someone in this mindset wouldn't be to "learn" not to threaten someone with a knife; it would be to bring a gun next time, or if they are your neighbors to plan retribution. Again, refer to #1 & #3.

#5. "Hand on the grip" or pistol "at the low ready". Make sure that you are already justified in using force before intentionally displaying your pistol, otherwise you might find yourself in trouble (this should also be covered in your class). As indicated by others already, be prepared to defend yourself when you pull it; it's not just a posturing tool.