That isn't where I find them on my PC. For me it is: %LOCALAPPDATA%\Kobo\Kobo Desktop Edition\kepub.
The book you found will be a "kepub", not an epub. They can usually be treated as an epub, but there are some extra span tags and some extra Kobo specific CSS rules.
But, the problem is probably DRM. Kobo use their own DRM and that has to be removed to use elsewhere. If you are a calibre user, I suggest you use the Obok plugin that is part of the DRM removal tools.
Or, download them from your library on the Kobo store. This will be an epub. If the book has DRM, it will be Adobe DRM.
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