Bug 13381 (https://bugs.koha-community.org/bugzilla3/show_bug.cgi?id=13381) apparently changed the spacing for the $h and $c subfields, which causes template text to appear concatenated. It's as easy as adding some <xsl:text> </xsl:text> elements after the spans. It looks like it's for both the intranet and the OPAC.
Closing this due to age