Don't use the meatgrinder for ePub. Use it for every other format. Hand craft your ePub. That's the best way to do it. Edit it with Calibre's editor or Sigil and do it by hand. Forget Word.
Also, don't center your internal ToC. That looks awful. But in ePub, you only need an NCX ToC and not an internal ToC.
The problem in your screenshot looks like auto-chapter detect because you used a heder code for the bits that are not supposed to be part of the ToC.
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