You don't need to use Hyphenate This! plugin with Kobo because Hyphenation works out of the box, at lest for supported languages. I use it only for my Kindle, when I use AZW3 format.
The KTE driver option to Hyphenate Files, if I understand it correctly, is useful to enable Hyphenation when it is settled to "none" in css. This is not the case of the majority of books I have seen but sometimes it can happen.
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