How to remove the whitespace in image name and save the new file

Use sanitize_file_name( $filename ). This function doesn’t just catch white space, it removes other special characters too:

$special_chars = array(
    "?", "[", "]", "https://wordpress.stackexchange.com/", "\\", "=", "<", ">", ":", ";", ",", 
    "'", "\"", "&", "$", "#", "*", "(", ")", "|", "~", "`", 
    "!", "{", "}", chr(0)
);

Find the following line in the plugin’s code:

$id = media_handle_sideload($file_array, $post_id, $desc);

Immediately above this line add:

$file_array['tmp_name'] = sanitize_file_name( $file_array['tmp_name'] );

Caveat: I haven’t tested it.

Make sure to rename the plugin and the plugin’s file name. Otherwise you get upgrade notices. And contact the author, ask him to implement these changes.

File not found.