Ah, this is another huge script hiding in another folder. The offending line is:
raw 372:*:set -nu1 %::text $3- | _doraw $1-
This should have the script process the MOTD line only if it does NOT contain double-spaces. Place this line on the line ABOVE the existing raw 372 line:
raw 372:*:if (!$regex(%a,\s\s)) { set -nu1 %::text $3- | _doraw $1- }
If it still suppresses the consecutive spaces, then there may be another script doing that with a "raw *" event handler.
edit: to be clear, the script filename is
Kte-Dyn.mrc
And this file should be edited from the Alt+R remotes editor.