It sounds strange to me as well. I would prefer to use "the fact that". This phrase it often used to better introduce a clause that is used as a noun. "I don´t like THE FACT THAT that this town has so much traffic and it is very noisy." Despite the fact that he came home late.... In spite of the fact that he.... Because of the fact that it was.... Due to the fact that he....

It is correct. "That" is used as a bridge. Think of it this way: "I don't like this town" - The object in this sentence is "this town". "I don't like that this town is..." - The object here is "that + the explanation." In the second example, the object is an entire sentence, not just a word. In this context it is necessary to make sense. Similar to Spanish when you say "No me gusta *que* esta cuidad..." Let me know if you have a question or clarification.

Hola, me parece que sea buena. Tambien hay frases semblables, pero no se traduzen como la primera: "I hate this town to have so much traffic" (No me gusta que la ciudad haya este ruido) como si tu podrias hacer algo por esto; la primera pero diz que tu no lo puedes. Entonces no son lo mismo. A veces THAT se vee doble, en frases como: "I don't like THAT THAT_show goes in TV". Pero si tu dices: "I don't like that_show to go on TV" parece que tu es el que decide.

It this case it is correct.