Database corruption on the Kobo.
Unless you have a backup copy, your only option is to force the device to rebuild the database. Just go to Settings | Accounts and perform a Logout from the Kobo account.
This will cause Kobo to delete the database, and then upon reboot you will have to go through device setup again.
Sideloaded books will remain on the device, and will be reprocess when the setup is completed.
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