Hello,
The problem comes from enabling disableWrapValue, please use the following options:
$options = array(
'parseDivs' => 'paragraph',
'addDefaultStyles' => true,
'useHTMLExtended' => true,
'downloadImages' => true,
'parseFloats' => true,
'strictWordStyles' => false,
);
$docx->embedHTML($html, $options);
and the extra blank spaces won't appear. Please note that disableWrapValue option is for very specific cases when using some Tidy versions with problems.
Regards.