I can't debate one thing - we certainly don't have all the information, and that can lead to bad advice at times.
I disagree on a couple of points:
(1) User-friendly URLs can have both usability and SEO advantages, whether or not they're meant to be typed in directly. Typically, those advantages are minor, but descriptive URLs can certainly boost SEO a small degree.
(2) If your URLs have spaces in them, they are probably being converted in some cases to "%20" (that's the URL-encoded equivalent of a space). It's generally a bad idea to have internal URLs with spaces, and this can lead to minor problems. This explanation sounds a little dubious to me. I'd highly recommend you run an internal crawl with a tool like Xenu or Screaming Frog - you might turn up badly formed internal URLs. I can't prove that, but I'd check if it were me. Hyphens don't "turn into" spaces.
Overall, this reads to me like a list of excuses, not solutions.