I believe life is a test so it can determine where you go after you die. Christians believe in heaven and hell. Others believe in reincarnation. It is all connected with the search of the meaning of life. We all want to know why we exist and we want to know what happens after that. We also want to know if our choices have consequences in the long run.
For example, if you are a Christian the test will determine if you go to heaven or hell. With the reincarnation, the test determines what will your next life be. If you are a mass murderer here, your next life you will need to suffer for what you have done before.
The point is that you know you exist, you just know. So it means you have a soul in a body. So that soul must go somewhere else and it must come from somewhere else.
Do free will coexist with an all-knowing being? It is possible. Here in this post, I talked about that https://steemit.com/life/@krisstofer/if-there-is-fate-do-we-have-free-will but I will explain it here too.
One of the theories of free will and fate coexisting is that only the ultimate consequences are a part of fate. It means that there is a goal that you must accomplish and all of your bad decisions that are connected with your free will are preparing you for that goal.
For a simple example. You have a choice of going left or right. You choose left. But for an unknown reason, the left path is closed so you are being forced of going right. That means that you have free will and fate.
It is more complicated but that is a simple example.
You have to complete your fate. How you complete it does not matter. And also it does not matter how long it takes.
And part of your fate has been determined from the start. If you are born in a Christian family there is a high chance of you being Christian.
These are my thoughts on your questions, have a nice day.