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I don't think what Kobo support said is 100% correct, as from what I understand, it's just logging into a Kobo account which causes issues.
I think you've run into the same issue I had a few years ago when resetting my Kobo Mini. I still am not completely sure of the cause, but restoring a SD card image (ask davidfor) should fix it.
Before you restore the SD image, can you create one first, and upload the first 1GB and PM it to me (if you want to)? I'm interested in seeing if I can figure out why this happens.
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