Version

4.0.5

Environment info

no command :/ couldn't find anything about what vue info does so ¯\_(ツ)_/¯ 

Steps to reproduce

Add non breaking space characters. eg, in a component:

{{ text }}< template v-if="something">& nbsp ;< specialComponent />< /template>

they are stripped out by default and replaced with an ordinary space. (ignore the weird spaces. i needed some way to make those things appear in the form preview)

if i'm adding a non breaking space then there's a high chance i need it.
you can't even add a non breaking space with & nbsp ; but instead need to use {{ '\xa0' }}

What is expected?

non breaking spaces are preserved

What is actually happening?

non breaking spaces are removed and replaced with one ordinary space

non breaking spaces can only be added with what's pretty much an ugly hack