"(Could the Kobo Desktop App even generate this specific error?)"
If the error came from the server then yes.
"I am able to purchase and download other epub books. In fact, I've bought a couple of other books without issue since this error occurred. I have purchased other epub books from Kobo without problems."
Good this rules out a client configuration problem - and squarely points to this being a server side issue.
I'm not sure why all this would necessarily lead one to conclude that the problem is on Kobo's side, but let's assume that as you suggest in your first reply there is a "misconfiguration" of the Content Server software run by Kobo. How would this be addressed?
In a perfect world, when you first contacted Kobo, and they noticed that they were unable to download the book either, then instead of sending you to Adobe support, they would have fixed the problem on their servers (or if it wasn't their server, contacted their partner to get them to fix this). If there was a problem with the Content Server software then Kobo (or the partner) contacts Adobe tech support to help them diagnose and fix the problem. After the problem is fixed they tell you at that point to redownload the content (or give you a refund if the problem couldn't be fixed).
Surely it's not up to the retail customer to deal with this?
It's not something you can fix, so no. Unfortunately Kobo tech support misdiagnosed the problem to begin with (mistakes happen), so I was asking questions to make sure it really was a server problem before I suggested that you contact Kobo again (trying to avoid bouncing you back and forth too much). Here's the explanation you need to provide to them:
"Most likely the downloadType (see the resourceItemData) is set to 'auth' instead of 'simple' for this particular resource. You need to change this back to simple."
Make sure to give them the .acsm file (it contains the server address so they can make sure it is their server vs. a partner server, and it also contains the resource id, so they can make sure they are looking at the correct book on that server).
Good luck and let me knows how it goes.
p.s. If it helps with Kobo I'm:
Jim Lester
Lead Engineer - Digital Publishing
Adobe Systems