The '\xa0' in ISO-8859-1 is a "No-break Space":

<NS> /xa0 NO-BREAK SPACE

$ printf 'a\x41G\xa0M'
aAG M

$ touch `printf 'a\x41G\xa0M'`
$ diron
-rw-rw-r--    1 tong     tong            0 Sep  8 23:48 aAG?M

although it list different in ls listing, it shows up nicely on bash command line, when pressing <TAB> to complete the fname.

After all, it is however not suitable for the substitution of <space> char. Because it can neither show up correctly in Unix or Windows. Under Windows, it is shown as a' (one-char).