Space bar does not activate select action anymore

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This might help.

Spacebar doesn't complete command and return to arrow

On Mac, when Accessibility is turned on, it’ll intercept space bar. You’ll see this by System Preferences->Keyboard and the Shortcuts tab, where tab moves keyboard focus between “All Controls”. If you change this to “Text boxes and lists only”, or type Ctrl-F7, it wont interfere. However, you miss the little blue silhouette and the ability to use space bar to click on the blue-halo selected item.