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I don't yet have the new firmware, but I've never found a way to browse all books on Overdrive with my current (or previous) Kobo firmware. If I go to the store and then my library I just see collections like "most popular" or the current Harry Potter feature.
I usually get firmware updates a couple of days after I see them reported on Mobileread, perhaps because my Clara came from Walmart? That's actually ok with me, as it gives me a chance to read about the good and bad of the new firmware before I start using it myself.
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