Thanks .
Good to know it’s not just me!
There is a link in the issue link that you posted above where one of the comments suggested that creating a symlink would allow the launcher to work, while still allowing Xcode to work without the spaces in the path. I’ve just tested it briefly with a new project and it does appear to work.
For future searchers I’ll repeat the steps here:
cd /Users/Shared
mv “Epic Games” EpicGames
ln -s EpicGames “Epic Games”
Cheers,