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What does your Kobo account say about the book? It it showing as available or is it expired there? As I understand it, the book goes Overdrive/Library -> Kobo account -> your KA1 device. So I'd see what the intermediate stage is saying since Overdrive and the KA1 don't agree on the status.
Assuming it's showing up as unexpired on your Kobo account, I would start by deleting it off the device and try re-syncing.
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