Whitespace-collapsing in templates can lead to no space between a word and a field

Using the following template:

{! :tabSize=2:indentSize=2:mode=html: !}
{! The form for help/about !}
<div id="help-box" style="padding:10px">
  <h1>Help / About</h1>
  <form id="help-form">
    <fieldset style="width:100%">
      <div class="formelt">
        <p>
          This is version {version} of the interface, with version
          {backend_version} of the <code>browselogs.pl</code> back-end.
        </p>
      </div>
      <div class="formelt">
        <input type="submit" name="close" value="Close" class="button" style="width:100%">
      </div>
    </fieldset>
  </form>
</div>

When rendered, there is no space between the word "version" and the filled-in value of the field {backend_version}. The collapsing of whitespace seems to have been a little too eager in this case.

Start by rendering the HTML template shown in the issue and compare the output around {backend_version}. Trace the template whitespace-collapsing behavior, then verify that the rendered text retains the space between "version" and the substituted field value.