I am having some issues with the exporting to Production PDF of annotation that uses character spacing from ArcMap 10.7.1. We have a number of Annotation objects that use Character spacing to lay them out over large geographical features and have generated masking polygons using the Feature Outline Masks tool to help manage any conflicts with any highways or drainage the text my come across. As can be seen from Screenshot_1, the masking polygons and the annotation line up quite nicely in ArcMap.
However, when we export the page to a Production PDF the Annotation is shifting and no longer lines up with the masking that is being created (see Screenshot_2). The issue appears to only affect annotation that has character spacing applied to it.
I did find the following technical support document (Problem: Specified character spacing is not preserved when exporting to PDF with ArcMap 10.5.1 ) but this does not make any mention of 10.7.1. In addition to which we have hundreds of MXDs that need exporting to CMYK PDF so making none of the suggested solutions very suitable at this time.