I don't remember which version this button worked, but with current 9.5.3.0, I can't get this to work anymore.
The function of the button should be to :
Change any occurrence of %20 into a space in ANY file and folders AND subfolders. (no matter if something or even nothing is currently selected).
<?xml version="1.0"?>
<button backcol="none" display="both" textcol="none">
<label>%20 to space for ALL files and folders in current lister</label>
<tip>%20 to space for ALL files and folders in current lister</tip>
<icon1>#newcommand</icon1>
<function type="normal">
<instruction>Rename FROM="*" PATTERN="%20" TO=" " FINDREP</instruction>
</function>
</button>
It works with Flat View, except that it only affects items directly below the current folder (which I think is how it has always worked).
If you want to do a recursive rename then the RECURSE argument gives you that (but would make it recursive whether or not you are in FlatView).
Alternatively, you could put a Select ALL at the start of the command, and remove the FROM=* argument, since what you're seeing is because using Rename FROM=* only renames items directly below the current folder.