After purchasing a book you can head to the "My Library" section of the Kobo website and see a list of the books in your library. Many of them will have a BLUE button next to them that will say "ADOBE DRM EPUB". Clicking this will download the ACSM file that when opened by ADE download the ePub version.
However, many (if not all) of the free books from Kobo do NOT have an ePub version; only a version that can be read by either Kobo Desktop or Kobo's other eReading applications for different platforms.
The non ePub material is stored with Kobo's own DRM and can not be read by Calibre, Apprentice Alf or other tools.
Under Windows they are located in C:\Users\[your user]\AppData\Local\Kobo\Kobo Desktop Edition\kepub
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