VCS root not working after upgrade

We upgraded from TC 2018.1.1 to 2019.1.3

After upgrade the VCS URL is not longer working.

We use windows share as VCS root. The path contains spaces, wich was no issue till know. But now that is not longer workng. We have the following message in the vcs log:

[2019-09-05 08:18:43,383] WARN [ical executor 2] - jetbrains.buildServer.VCS - '[E:\TeamCity Data\system\caches\mercurial\hg_4534477540304332936] hg --config ui.interactive=False pull --config extensions.progress= --config "progress.format=topic number" --config progress.delay=0 --config progress.assume-tty=True \\shh10001.ww.hl.lan\Groups\RHH4T_AAM\6%20Application%20Operation\itaorepo' command failed.abort: repository \\shh10001.ww.hl.lan\Groups\RHH4T_AAM\6%20Application%20Operation\itaorepo not found!

[2019-09-05 08:18:43,383] INFO [ical executor 2] - jetbrains.buildServer.VCS - Cannot load current state for VCS root "itaorepo" {instance id=29, parent internal id=11, parent id=Reporting_Jira03hlagCom_Itaorepo, description: "mercurial: \\shh10001.ww.hl.lan\Groups\RHH4T_AAM\6 Application Operation\itaorepo"}: 'hg --config ui.interactive=False pull --config extensions.progress= --config "progress.format=topic number" --config progress.delay=0 --config progress.assume-tty=True \\shh10001.ww.hl.lan\Groups\RHH4T_AAM\6%20Application%20Operation\itaorepo' command failed.
stderr: abort: repository \\shh10001.ww.hl.lan\Groups\RHH4T_AAM\6%20Application%20Operation\itaorepo not found!

The GUI shows that its unable to reach the VCS.