Here's the fix VMware has supplied, I have tested and verified this does indeed resolve the issue:
1. SSH into your vCSA
2. Set Space replacement just to be " ":
/opt/likewise/bin/lwregshell set_value [HKEY_THIS_MACHINE\\Services\\lsass\\Parameters] SpaceReplacement " "
3. Restart likewise's lsass service to pick up the new config:
/opt/likewise/bin/lwsm restart lsass