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What is the difference between Eclipse Che and OpenShift Dev Spaces?

OpenShift Dev Spaces is built upon Eclipse Che and is optimized for Red Hat OpenShift and Red Hat Linux. It is built on RHEL 8. OpenShift Dev Spaces bundles a curated set of devfiles and plug-ins supported by Red Hat, whereas Eclipse Che has a broader set, including ones that are not supported in the product.

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Are there limitations using OpenShift Dev Spaces on the Developer Sandbox?

There are no particular limitations but a specific configuration. OpenShift Dev Spaces namespace and storage strategy, CPU and memory quotas, and other properties of the workspace server, are pre-configured and cannot be changed. The devfile and plug-in registry are also pre-configured and cannot be customized.