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Thanks for the information provided to the Illustrator team.
We are able to reproduce this issue at our end and the engineering team is currently isolating this issue further to get to the root cause.
With Best Regards,
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Just to add my comment to the mix. Just updated to latest MacOS today, and cloud fully up-to-date as of today. Spacebar only works when MS office programs are shut down.... Literally didnt even need to restart, just quit MS Outlook.