Closing as not a bug. As the description of the action says, spaces are used to separate arguments. If you need to run a path with spaces in it, wrap it in double-quotes (as if you were running it on a command-line - since in fact it works by running a command-line statement).
Since expressions already use double-quotes to mark strings, to make a string containing a double quote you need to use two double quotes next to each other. For example: """C:\Program Files\File.exe""". Or in your case: """" & NodeWebkit.AppFolder & "/dxwebsetup.exe""". I've underlined the double-quotes that end up returning a single character - it's a little tricky, but it should work once you get the hang of it. I've updated the action description to include this tip.