I have spent a fair bit of time playing with the TOC detect features in Calibre and the only thing that seems to work is importing from .prc file which has a TOC already. Importing .LIT does not see the TOC even if the file has one. The auto chapter detect does not work at all in LRF conversion - but I did make it work once converting to EPUB. The conversions were done using test files so I could control the tag name and attribute in the input doc. I have tried HTML, RTF and plain text - no luck with any of them.
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