Yes, Kobo do update your books, but they don't send out any sort of notice. The only reason I have noticed is that the cover changed. I have no idea what else changed in the book.
There can also be a difference between the epub version you can download from your library and the kepub version downloaded to the device. The most noticeable is the cover, but I have also seen formatting. I haven't checked for differences in the text.
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