I just tried uploading the two samples converted with kindlegen to the Touch and neither of them showed embedded fonts. So as far as I can tell, the Kindle Touch has no support for embedded fonts, period. Both calibre and kindlegen produced files show embedded fonts in Kindle Previewer and not on the Kindle Touch. This is on a Kindle Touch with firmware 5.1.0 (1557760049)
Given all the other problems with kf8 on the Touch, I recommend you simply do not use it on the Touch.
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