If you haven't checked options to remove spacings then calibre isn't removing the spacing. It may be that mobi or the Kindle do not respect the method used to create the spacing, does this happen with all epubs and odt files? How do you create the space in the odt files?
I just converted a epub, that uses css top and bottom paragraph margins to create the space between paragraphs, to mobi and the paragraph spacing still exists in the mobi book.
Maybe someone here can help further.
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