[Ken Maltby]

The option to use the book cover should have been moved to "settings.reader.lua" from the "defaults.lua". It appears to be gone from defaults, but I don't yet see it in settings.reader.lua. (I have "KOBO_SCREEN_SAVER_LAST_BOOK = true" in my "defaults.persistent.lua". You could try adding it to yours, with it set to false.)

I don't know why your KOBO is not having the menu option though.

Luck;
Ken