Create the new table with DAX considering Space.

Not DAX, but yes to power query. 
load table B to PQ

add a new column that creates a a list from 1 to the value in number cycle. It would look something like this. 

={1..[NumberCycle]}

this will give a column  containing lists. You should be able to expand this column into new rows. 

define table
    TableB =
        DATATABLE(
            "Category", STRING,
            "SpaceNumber", INTEGER,
            "Cycle", INTEGER,
            {
                {"A", 1, 5},
                {"B", 2, 4},
                {"C", 3, 4},
                {"D", 1, 4},
                {"E", 2, 3},
                {"F", 3, 4},
                {"G", 1, 4},
                {"H", 2, 5},
                {"I", 3, 3}
            }
        )
EVALUATE
SELECTCOLUMNS(
    GENERATE(
        TableB,
        var Cycle_ = TableB[Cycle]
        var SpaceNumber_ = TableB[SpaceNumber]
        var Category_ = TableB[Category]
        var CycleIndexStart = 
            1 + SUMX(
                filter(
                    TableB,
                    TableB[SpaceNumber] = SpaceNumber_
                    &&
                    TableB[Category] < Category_
                ),
                TableB[Cycle]
            )
        var CycleIndex_ =
            GENERATESERIES(
                CycleIndexStart,
                CycleIndexStart + Cycle_ - 1, 1
            )
        return
            CycleIndex_
    ),
    "Category", TableB[Category],
    "SpaceNumber", TableB[SpaceNumber],
    "CycleIndex", [Value]
)

Execute this code in DAX Studio... By the way, your result table from above has mistakes in it. Mine seems to work correctly.