O2 spacers that I am aware of are designed for early EFI systems to lean the mixture slightly by shrouding the sensor from the exhaust stream, which causes it to see less oxygen in ppm of exhaust, thereby leaning the mixture to compensate. If it were to detect more oxygen in the system, that would indicate an already lean condition, causing fuel enrichment to compensate.
On newer EFI systems, they would likely have no effects, since the feedback system doesn't rely solely on oxygen sensor input.
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