Just to be clear ---- I am wondering if one space in between counts as an entirely new character name (I believe it does, but am not certain and would like to know before trying lol).
You can't create a character with the same name, but you can create one with a close name, like using accented characters, hyphens, spaces etc.
Beta tester since February 2014, played ESO-TU October 2015 - August 2022, currently on an extended break
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Variants of upper case and lower case are counted toward the same name, so Deadpool, deadpool, DEADPOOL, and dEaDpOol are one name on the server, not four.
But you could have Deadpool, Dead Pool, and Dead-Pool, as well as those names with a preceding article (A Dead Pool, The Deadpool, etc) You just can't start with a space to bypass getting a name already in use.
I have 18 characters with my wife's nickname. Some are 1 word and some are up to 3 words. I use no special characters, so I can keep going if I want to.
I basically only play one elf. But she manifests as multiple class/specs that all look identical. She approaches the decision of which class to play as for any particular session with no more concern than her outfit or hairstyle. Her name is Buffy and has been so continuously since 2007 through several Elder Scrolls games. Some of the name variations she uses in ESO include: Bùffy Búffy ßuffy Büffy Buffý Bûffy Bµffy Bufƒy Buffÿ Buƒƒy
Sorry I cannot answer the OPs question with total certainty but am monitoring this thread in hopes of a definitive answer.