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Bubble propagation margins are found to be affected by heat treatment in ion-implanted contiguous-disk devices fabricated on liquid-phase epitaxial (LPE) grown double-layer garnet films which support 1-μm bubbles. When an optical reflector is deposited directly on the driving layer interfacial diffusion takes place, and this raises the coercivity of the implanted layer, which in turn causes a severe degradation of propagation margins. In samples fabricated with optical reflectors isolated from the driving layer, the adverse effects of annealing on propagation margins are stronger in close-packed minor loops due to interaction of long-range charged walls as compared with isolated loops and isolated disks, and they cease to propagate bubbles after annealing in the temperature range of 350-400°C, whereas the loss of margins in the isolated loops and disks are typically less than 30 percent after 600-650°C annealing treatments. Stress gradients caused by the discontinuity in the overlay patterns contribute significantly to the increase of threshold drive field after anealing. The rapid degradation of propagation margins found after annealing in the temperature range of 350-400°C in all samples is caused by reordering of the damaged lattice.