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The final epub goes in the same directory where the acsm file is, before it's deleted. IIRC sometimes you can see the librarian updating the percentage of the download in progress on the icon of the newly created epub, which would give the impression that no intermediate temporary file is involved, but I can't really tell, it may be just an animation. Then you see the librarian changing the file name with the book title and rendering the cover image, before the default reading program opens.
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