I’m not 100% sure this topic fits in this forum, but I was searching here for answers to it, so I hope it might help others to have the solution/workaround here!
I created a variable font with a width axis. The font works well in environments like web browsers, but the variable axis slider has no effect in Illustrator. This also affects variable fonts with a Width axis and other axes – none of the shaping changes of any axes are rendered in Illustrator.
The workaround:
After some debugging and experimentation, I finally learned that the “space” glyph must change in its character width, and only then will Illustrator actually apply variable shaping changes.
This is an Illustrator bug, so I’ve filed it in their sort-of bug tracking forum: