The issue is that the original export was HTML, not XHTML. That is one of the differences between them. Also, please be aware that often the value of 'auto' for settings can give unexpected results. Most of stuff in your paragraph style can be removed without issues (not the margin though!). The font declaration can (and should) also be removed, since they depend on a font that might not be present on the reader. Font references should be in the stylesheet, not the XHTML itself.
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