Creating a vertex with a STRING value that contains SPACE crashes with error 500 - possible bug

The following query has text as its third argument.
When the value passed for text is a string that contains a SPACE (e.g.: “space here”) - the query fails with error 500 coming back (when called using REST API) or hangs on GraphStudio.
Query runs OK if the text value contains no space (e.g.: “nospacehere”).

This is TG cloud 3.5.3

EDIT: With SYNTAX V2, this bug is only experienced for REST API calls. In the GraphStudio it is working

CREATE QUERY createProblemCase(VERTEX<Learner> keyLearner, STRING image, STRING text) FOR GRAPH SimplifyPilotADEV SYNTAX V1 { 
  STRING caseId = gsql_uuid_v4();
  DATETIME regDate = NOW();
  INSERT INTO ProblemCase (PRIMARY_ID, status, startTime, problemImage, problemText
    ) VALUES (
      caseId, 0, regDate, image, text
  //Insert StartedA Edge
  INSERT INTO StartedA (FROM, TO, startTime) VALUES (
  //Increase Learner's total Cases count
  keyLearner.totalCases = keyLearner.totalCases + 1;
  PRINT caseId; 

Not sure if this will help, but when calling REST APIs, try putting in the %20 for the space

One would expect the encoding/decoding to take place automatically.
I can surely replace all spaces with %20 (or any other character, for that matter), and remove it when reading the data in queries.
Is this by design, or a malfunction?
The very fact that the same input behaves differently (in GraphStudio vs. REST API calls) tells you something is not right.