This whitespace replace regex is not replacing encoded whitespaces.
https://github.com/simplabs/qunit-dom/blob/ec5c614f1ea589419eea1591f9b62d32760dc5a1/lib/helpers/collapse-whitespace.ts#L4
You could maybe replace with
.replace(/[ \u00a0]+/g, ' ')
It creates for example issues with assert.dom().hasText() where one uses test text to compare with dom element textContent and all multiple continuous white spaces from the test text are collapsed to one single white space.
For example with html
a b
assert.dom('p').hasText('a b') would fail
and it is not possible to create a hasText parameter which would succeed the assertion.