WordPress pagination not returning posts on second page

Try this as your $paged init

<?php global $paged; ?>
<?php 
  if ( get_query_var('paged') ) { $paged = get_query_var('paged'); }
  elseif ( get_query_var('page') ) { $paged = get_query_var('page'); }
  else { $paged = 1; }  
?>

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