That doesn't seem to be how it works when I do it?
If I convert epub to epub, it does create another file and label the old with .original_epub, but the new one still has the same stretching issue. If I start from a pre-existing LRF and convert to epub, it still has the stretching issue. If I convert from epub to LRF, remove the epub, and convert the new LRF to epub, it fixes it. I have no idea why, but it seems to be consistent.
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