I used the Extension Generator to generate a module with a space in the name, but when I when to install the generated module it did not show up in the list of available modules, in some cases it causes a 500 error when trying to look at the list.
Steps to replicate is basically go through the extension generator with the default settings, except for:
Name: Anything with a space
Include Example Code: No
Then navigate to the Available Modules list, it will either not show up or throw an Error 500, which disappears if the new module is deleted.