I had another look at test20.mobi, which is indeed a hybrid .mobi file. However, the embedded font in the .azw3 file displays fine on my K3 after activating the Publisher Font option. I.e., I cannot reproduce your problem.
1. Did you try transferring the .mobi file via USB cable instead of PDS?
2. Did you test test20.mobi with devices other than your PW?
3. Does toggling the Publisher Font option display the embedded font?
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