There is some logic in the gradle.bat to deal with spaces for JAVA_HOME. So I know scenarios where it works. It would be good to have a test case where it does not work. From my research quite a while ago it looked like an issue where there is no perfect solution. E.g. in the .bat of Jira or Confluence you get the recommendation not to have spaces in the JAVA_HOME as the possible work arounds do not always work.