My desktop app shows 5 books which aren't shown on the web or my Pre, I assume these are freebie books much like there are 100 free books on the Kobo units. The books are:
- Adventures of Huckleberry Finn
- Alices Adventures in Wonderland
- Dracula
- Grimms' Fairy Tales
- Memoirs of Sherlock Holmes
When signed into the Desktop app I also see my purchased Kobo books along with the above 5. I also see my Kobo books on my Pre's app (but not the 5 above).
Have you tried logging out and back in on both the Pre and the Desktop? With the Pre the option should appear in the app's top drop down menu.
Note: I don't think I'm on the latest Kobo desktop app, I'm using linux and haven't been prompted to update.
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