Can you solve this logic puzzle?

Summary

‘Originally’, I added ‘etc. etc.’ to the phrase ‘everyone already knows everyone already knows’; I just took that out again. For I’ve kept coming back to the impression that’s where the catch is. In the scenario where there are three blue-eyed people, for example, not everyone knows everyone knows everyone knows there’s at least one blue-eyed person. And with each added blue-eyed person, we can add one repetition of the phrase ‘everyone knows’.