Yeah, that looks like it's done correctly and should work. About the only thing that I usually do differently is to point the final "dummy" src at either a different anchor point or a different file entirely from the real navPoints.
Maybe see what happens if you remove the #chapter23 at the end or point the src at one of your image files? It's not going to get included anyway and may be the key to solving KindleGen's weird buggy pickiness which I really wish the Amazon people would take the time to fix instead of expanding audio/video file format support.
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