I don't know if it is true, but Amazon CS told me that it was the publisher's choice as to which devices to enable (at least with fixed-layout format). Some graphic novels, for example, are not enabled for devices without color displays.
Fixed layout content is designed for particular screen resolutions (it is basically a series of image files). If you start off with something that is designed for a high resolution screen, it may not look good on a lower resolution screen because of rescaling artifacts ('banding' or 'moire-ing'). It seems likely that's the case here.
IMO the current fixed-layout formats are no better than PDF, and in many respects, they are a step backwards. For example, there's no vector support that would eliminate rescaling artifacts and achieve smaller file sizes. They have little or nothing in the way of 'accessibility'. And format fragmentation abounds.
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