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I just don't understand it. It seems like silliness if they have a law that says you can't keep a gun in a PDA case on your belt, but it's OK to have it in your pocket. Who thinks up these things anyway?
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If you can legally carried concealed, then concealing your gun inside a PDA case is fine as well.
Where people get in trouble is when they're only allowed to carry
openly, and they use PDA cases, cellphone holsters, etcetera to try to skirt the law.
So if the OP's Minnesota license permits concealed carry, then his knife sheath/holster is perfectly okay.