Conversion via KIndle Previewer often messes up my layout, in particular it often increases line-spacing. I get a better conversion using Calibre, but I only recently learnt the way to make the thumbnail of the cover image show. Tick the share not sync option in the MOBI output settings in the conversion dialog.
But yes, also remember to set the Semantics to "Cover" for both the cover page AND the cover picture file in Sigil.
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