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It didn't create a new folder in the iTunes directory for "iTunes Books" and just added the epub books in the "iTunes Music" folder.
The pdf don't get added in the new "Books" library but it does import them into iTunes. If you bought an album from iTunes with a booklet it was probably a pdf, it handles them the same way except they aren't associated with an album. They'd be hard to find and cleanup if you import everything.
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