If space is not working in hasu's firmware, then it can only be faulty board, faulty mcu pin or faulty switch. The last one is the easiest to check.
As for layout, if you edited xml file, the layouts created earlier might be invalid, so I'd create a layout from scratch which has only a couple keys to see if the key works with shift. If it does, you'll have to re-create the layout because your current one is broken.
Why did you edit the xml file in the first place? What was missing?