My HD7 (2013) just got the update to 4.5.3 and does show hyphenation.
I agree that is probably something that happens in KDP after you click Publish. For one thing, the bits that are delivered to a given device are not determined until download time. Device does will get either 'mobi7' or 'kf8' (or for iOS, yet another set of bits), the kf8 bits may well be different for the respective implementations.
it would be interesting to compare samples downloaded for different devices to see what is different (using mobiunpack).
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