When you used Calibre to convert the book to a kepub, did you also use Calibre to send it to your Kobo?
I bought a Japanese book from Kobo, stripped the DRM off it and then sideloaded it onto my Kobo Aura and my KA1 as an epub. Although I could read it, none of the features worked. Especially annoying was that I couldn't get the Japanese dictionary to work with it.
So I used Calibre to convert the DRM free epub back to a kepub, then dragged and dropped it onto my Kobos. Didn't work.
Finally, I used Calibre to send it to my Kobos and everything seems to be working fine.
You might also want to consider using Koreader on your Kobo. I have some Chinese DRM free epubs which I am able to read on both of my Kobos and which I can use a sideloaded Chinese-English dictionary with. However, some other functions won't work such as jumping to a chapter from the table of contents... I haven't yet tried to convert them to kepubs to see if that might resolve the issue because it isn't overly important to me. However, I did try opening them up with Koreader and was able to jump from the TOC to the selected chapter without any difficulty.
The other advantage of Koreader is that it allowed me to install quite a few more dictionaries. I now have 6 Chinese dictionaries to choose from when looking up vocabulary. Consequently, Koreader is now what I use for reading in Chinese.
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