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That's correct. I see no hyphenation in the "mobi" downloaded at Step 7, even though the published book has Enhanced Typesetting: Enabled.
(Sometimes, though, I simply can't get my new Fire tablet to find the book I have just sideloaded to it, and rather than bash about doing things I probably shouldn't be doing, I simply use the Send to Kindle option. This always does show up, though without a cover, and perhaps it's not KFX at all. The versions pushed to me by KDP Support, or purchased in the case of a new book, do show hyphenation.)
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