This is where we disagree:
Yes, the term "everything" would encompass space when used in a broad, all-inclusive sense. Space is part of the totality of existence and reality, so it is included within the scope of the word "everything."
Space refers to the vast expanse or extension in which all material objects and events occur. It is one of the fundamental aspects or arenas of the universe, along with time, matter, and energy.
So when someone refers to "everything" without any qualifiers or limitations, that broad term by definition includes space, since space is an essential part of the totality of what exists in reality. The only way space would be excluded is if "everything" was explicitly defined or constrained to a more limited domain that specifically omits space.
But in general usage, "everything" casts the widest possible net, encompassing all aspects of existence, including the dimensions and extent of space itself. So in that all-encompassing sense, yes, "everything" absolutely includes and accounts for space.