Currently, the timestamptz is mapped to YYYY-MM-DD hh:mm:ss.sssZ format and timestamp is mapped to YYYY-MM-DD hh:mm:ss.sss.
The document says "This is compatible with ISO8601 and SQLite’s functions.".
However, this format (use a space instead of T to separate date and time) isn't compatible with ISO-8601. (From Wikipedia, Separating date and time parts with other characters such as space is not allowed in ISO 8601, but allowed in its profile RFC 3339.)
Additionally, SQLite supports using T as separator:
YYYY-MM-DD
YYYY-MM-DD HH:MM
YYYY-MM-DD HH:MM:SS
YYYY-MM-DD HH:MM:SS.SSS
YYYY-MM-DDTHH:MM
YYYY-MM-DDTHH:MM:SS
YYYY-MM-DDTHH:MM:SS.SSS
HH:MM
HH:MM:SS
HH:MM:SS.SSS
now
DDDDDDDDDD
So, I think, powersync should switch to use T as separator instead of the space.