That's bad luck. The only time I have seen something similar was with my son's Glo. In that case, there was a scrap of paper stuck under the bezel. Removing it fixed things. But, you have already done that. So, you need to convince Kobo to replace it.
The kobo-images directory contains the cover images. There are up to three per book in different sizes. And while the extension is "parsed", they just jpegs.
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