What level of restoration ?
If you're leaving the knife intact :
*Tape off the butt cap and backside of the guard.
*Put on a light coat of water base polyurethane with your finger. (Don't soak it) Let dry.
*When dry, lightly sand with 220 AO around the handle. Silicon carbide will dirty up what you're sanding. Don't go lengthwise or you'll keep fuzzing up the washers.
* Repeat process every time you get past the poly with 320 AO and possibly 400 AO until you're into nice clean leather.
* Burnish handle with a smoothing tool going around the handle. I use a butter knife but any clean steel bar will do. A knife vise comes in handy here. Don't go nuts with this, just lay the fuzz down. These knives came with rough handle finish and unsealed.
If disassembling the knife you'll need to be aware of how it was assembled.
Some were peened through the butt cap with a pin, others are a blind hole with a pin going partially through the side. Very few were screw on. This could turn into a book, PM me if you need more detailed info.
The bayonet could probably use a soaking or three in kerosene. (not the handle unless it can be removed) Let it soak a day or two and wipe lengthwise with a white scotchbrite pad or 0000 steel wool. Once you get to the point where it looks like you may scratch the blade, start wiping lenghtwise with kero soaked leather scrap or brown paper bag . keep it wet with the kero. Each stroke will lift out particles of rust. Repeat as neccesary, the goal here is not to remove the original patina, munition markings or leave new scratches in the blade if possible. If you do damage the patina, wipe and blend the blade with ferric chloride or white vinegar and nuetralize with windex. It takes a bit of time.