Text overlapping in Fixed layout epub

I am going crazy trying to export fixed layout epub from InDesign to ADE 4.5.11. ADE is not showing fonts correctly and probably because of that words are overlapping and spaces between words are sometimes missing. Fun patt is that Calibre works just fine on epub files and Edge browser shows xhtml files correctly. Also Kobo sideloading check shows the epub just fine. Epub validator does not give any errors.

Based on all the trials I would say there is something seriously wrong in ADE but there would probably be more complaints out there if that was the case.

Any tips? I am using windows 10 and the indesign 16 updated today.