Description
If a markdown file in "extras" contains named entities like
then the output xhtml will fail epubcheck
with a fatal error:
FATAL(RSC-016): ./ymlr.epub/OEBPS/content/benchmark.xhtml(70,45): Fatal Error while parsing file: The entity "nbsp" was referenced, but not declared.
The w3c validator agrees that this xhtml is invalid, saying
Fatal Error: reference to undeclared general entity nbsp
I can't make out how all the different specifications intersect here, but it makes sense that epub reading systems might only support a limited subset of all named character references. XML with no entity modules has only a handful of named entities,
is defined in HTMLlat1, and at the other end of the scale, current recommendations are to pull in the htmlmathml-f entities.
Since EPUB can't reach out to external resources, in order to support named entities it seems that a fully-compliant epub container would have to either inline this entity set (if this is allowed?), or embed only the necessary entities literally.
Another simpler alternative to shipping named entities would be to resolve all named character references into the numeric form, ie.
->  
.