Reconversion is needed to embed covers into MOBI, but not AZW3.
Note that this only applies to the cover embedded in the book. The cover when viewing books in cover view is independent of the embedded cover, and is used from [userstore]/system/thumbnails/.
If a book has a valid ASIN, that cover thumbnail must be downloaded from Amazon's servers -- or alternatively, calibre will sideload one based off the library metadata.
If the book is a PDOC, the cover thumbnail will be extracted from the book, by the Kindle software. Since MOBI cannot update covers, you will need to either: use AZW3; or set the EBOK flag &/or add an ASIN (Quality Check PI can do this) so calibre sideloads the thumbnail.
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