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"that despite" is a perfectly acceptable phrase in written English.
It is used to introduce a fact or concept that is in sharp contrast to or unexpected in light of something that was mentioned previously. Example: "The ocean was surprisingly warm that day, that despite the fact that it was early December."
Exact(49)
That, despite the installation of a basketball court.
That, despite all that had gone before, the world was moving forward?
That, despite the fact that few Chinese have any idea what Christmas is all about.
That despite a slight decline in values from 2007.
Not everyone realizes that despite GV's bench of investors, every decision fell to Maris.
That despite the fact that shares spent much of November at a sub-$5 share price.
Similar(7)
That is despite several brewing scandals.
And that is despite the horror stories.
That came despite indications that the economy is growing.
That is despite the fact that a precedent exists.
That's despite a hefty price tag.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com