Created dataset VM Offline Datastore
Created NFS share of dataset
Web UI shows NFS share
Error for syntax of /etc/exports is logged

Mar 2 14:47:03 va-lor-tn-ut-01 1 2021-03-02T14:47:03.934638-05:00 va-lor-tn-ut-01.mteqdom.mteq.com mountd 3785 - - bad exports list line '/mnt/Atlantic/VM': symbolic link in export path or statfs failed
Mar 2 14:47:04 va-lor-tn-ut-01 1 2021-03-02T14:47:04.235525-05:00 va-lor-tn-ut-01.mteqdom.mteq.com mountd 3785 - - bad exports list line '/mnt/Atlantic/VM': symbolic link in export path or statfs failed

The line added to /etc/exports shows that the spaces are not escaped (with \040 ).

root@va-lor-tn-ut-01[~]# sed -n '/VM/p' /etc/exports
/mnt/Atlantic/VM Offline Datastore -maproot="root":"wheel" client1 client2 ...

Manually fixed the exports entry and stop/started the NFS service from the Web UI.

root@va-lor-tn-ut-01[~]# sed -i '' -e '/VM/s/ Offline /\\040Offline
040/p' /etc/exports
root@va-lor-tn-ut-01[~]# sed -n '/VM/p' /etc/exports
/mnt/Atlantic/VM\040Offline\040Datastore -maproot="root":"wheel" client1 client2 ...

Same error logged, likely because /etc/exports appears to be regenerated.

Mar 2 17:10:58 va-lor-tn-ut-01 1 2021-03-02T17:10:58.344793-05:00 va-lor-tn-ut-01.mteqdom.mteq.com mountd 36219 - - bad exports list line '/mnt/Atlantic/VM': symbolic link in export path or statfs failed

root@va-lor-tn-ut-01[~]# sed -n '/VM/p' /etc/exports
/mnt/Atlantic/VM Offline Datastore -maproot="root":"wheel" client1 client2 ...