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If the rosebushes are new plantings, they may be taking a rest period to store up energy for another bloom cycle. Check them over well for any insect damage or insect activity, also check them well for any fungus activity. They may need some treatment if either of such pests are active. Make sure they are well watered and well fed as well. As for the mothballs, I would not use them as they present danger that we really do not need in our gardens or rose beds. Here is a good article on the mothballs issue for you to check out: https://www.gardeningknowhow.com/plant-problems/pests/pesticides/mothballs-in-gardens.htm

It is likely a type of beetle that is damaging your rose foliage. You should be able to gain control of the situation by spraying the rosebushes with a product called Bayer Advanced Complete Insecticide. Another method would be to give all the knockout rosebushes a treatment of Bayer Tree & Shrub Granules, it is a systemic product that does a very good job.

It is likely a long snout beetle causing the holes in the leaves but could also be rose slugs or worms. Give them a treatment of Bayer Tree and Shrub Granules to gain control of the culprits.

Give the rosebushes a treatment of Bayer Tree & Shrub granules. The granules feed the rosebush to increase vigor and also release a systemic insecticide that moves up through the root system and throughout the rosebush. In this way the insects making the holes, likely a long snout beetle, are controlled.

It sounds like your Knock Out rosebushes are the grafted type of rosebushes. The hardy rootstock they are grafted onto will sometimes decide to send up its own shoots/canes. It is best to do as you have been doing and prune them out. Be sure to prune them out as far down on the bush as possible, even a bit below ground and seal the cut with Tacky Glue from the craft store. If these shoots are not pruned out deeply they will come right back very quickly. Please see this article link on Own Root and Grafted rosebushes too: https://www.gardeningknowhow.com/ornamental/flowers/roses/own-root-roses-grafted-roses.htm

Hi Johnathan little is known about rose replant disease. You can replant roses sucessfully using Mycorrhizal fungi you can read more here http://theperfectgarden.co.uk/2016/05/17/mycorrhizal-can-help-plants/
Roses are such a personal choice. Zone 7b is not much of a problem especially shelter by the house.