`exo-open --launch FileManager` fails with spaces

After upgrading to xfce4-settings 4.16.4 the following throws an error:

$ mkdir 'foo bar'
$ exo-open --launch FileManager 'foo bar'
Thunar: Failed to open "foo%20bar": Error when getting information for file “/home/test/foo%20bar”: No such file or directory

Reverting commit 55e3c5fb allows Thunar to open the directory again.