well it didn't seem to work for me - viewing the epub ( before) and the mobi ( after) versions with calibre viewer - the epub has no 1st indent but the mobi has. I tried it twice with 2 different books. I initially spotted it after sending book to kindle - I thought maybe I'd messed up conversion or copied an older version so I backtracked & double checked.
building & converting a short test file would prove for definite what is happening
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