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I just ran into this too.
Upgrading to 2.0 resolved the issue and everything on the Calibre end is working correctly. I also re-tested a Kobo book, everything works correctly there as well. I was really worried about upgrading from my creaky old 1.7.2.
I was happy to see 2.0 did not upgrade/overwrite 1.7.2 so I now have both versions on my machine.
BTW - I emailed Google 24 hours ago any haven't heard anything from them yet.
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