For conversion from mobi, azw and azw3 the epub2 is fine. You can use epub2 or epub3 (it's a setting). Of course DRM needs to be removed at import time to Calibre.
azw3/KF8 is not discontinued and works on all but 4 earliest Kindles (K1, K2, DX & DXG). The KK3/K3 and later works well with azw3 with last FW update.
azw is old mobi KF7 with different encryption.
No Kindle can read any epub version.
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