As of 25.0.0.11, quoting the --archive value for a path that contains a space results in an exception because of this fix that was put in Open Liberty. We opened issue 33494 for what we considered a regression since the package command worked fine before 25.0.0.11 and now it fails with the following exception:
Packaging server <server_name>.
CWWKE0056E: Unable to zip up directory due to an IO exception java.io.IOException: java.lang.reflect.InvocationTargetException.
Server <server_name> package failed. Check server logs for details.
If the version of Liberty is 25.0.0.11 or later, you can either quote the value or include escapes, but not both.