You guys and your bug claims.
Rule 1: If you are quoting things, you are doing it wrong.
Rule 2: You have to quote things.
Rule 3: Refer to rule 1 & 2.
A shell environment variable cannot contain a list of quoted strings (well, ok, sure, it can, but it won't work).
In your script, with your three files selected, this line:
cat $KMVAR_pathList
Gets the following parameters:
- '/Users/peter/t/Archive/Test
- File
- 1.txt'
- '/Users/peter/t/Archive/Test
- File
- 2.txt'
- '/Users/peter/t/Archive/Test
- File
- 3.txt'
The quotes are meaningless characters in this context.
See this similar discussion: