I finally gave up and purchased the book from Amazon, and I have had no formatting errors with the Kindle edition.
Now hopefully Kobo will refund my purchase without a hassle.
I've purchased around 125 books from Kobo, and have had no other formatting problems of this nature (although admittedly I've not yet read many of the books purchased). I wouldn't have minded an occasional problem, but it happened with every italicized word, of which there are many.
SteveK
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