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(first post, hi)
It sounds like the most important part of this new OTA update is that it will replace the recovery image with one that won't require the Kobo servers to run the setup wizard.
I had 4.12.12111 on my Kobo Mini, so I decided to do a factory reset to see what the recovery would do, and it reverted back to a 3.* version; so clearly all the manual 4.* updates I've been doing haven't touched the recovery partition.
So if you're running a more recent, unsupported firmware, I'd recommend you do this yourself - do a factory reset, connect it to Kobo on a computer and let it do the update (mine did an OTA update without the computer but it wasn't the 'final' one). Then you can put 4.12.12111 (or whatever) back on if you so choose. But without this final update, a factory reset will cause problems down the track if you need to do one, because you'll still have the old recovery partition even though your firmware is newer.
It remains to be seen whether we'll be locked out of the Kobo store after February if we're using a 4.* firmware. My guess is we won't: surely the 4.* firmware will work the same as any other Mark 4 device.
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