Tangled Web was in round 1 and if I remember well also round 2. I think it didn't pass to round 3. Yes indeed there are many covers this year and unfortunately there were some "excellent" losses.
For the literary contest yes, all the books are in contest until the end. The Cover Contest is a fun competition, a popularity contest to allow people to "partecipate" to the Rainbow Awards while judges read the books.
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