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That means the edition of the book you bought is no longer available for sale from Kobo. You will still be able to download the book from your library in the store, or on the device. If you can still find the book in the store, it is probably a different edition. I have quite a few books from Kobo like this.
As to the covers on the device, I haven't seen that. But, I also have WiFi on all the time and it syncs whenever needed.
Loosing data on the Kobo devices after a power cycle, can be a sign of database corruption. I haven't heard of it affecting cover display, but the database stores an id for the cover image. If that is corrupted somehow, then the cover won't be displayed. But, if this was the case, I would expect that you would be missing other things such as losing the reading status. The database can be checked with any SQLite database manager, or with my Kobo Utilities plugin in calibre.
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