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How Does the ‘SegWit’ Upgrade Affect the Calculation of Block Space?

SegWit (Segregated Witness) changed the block size limit to a 'block weight' limit of 4 million units. It segregated the witness data (digital signatures) from the transaction data.

By counting witness data as 1/4 the weight of regular data, SegWit effectively increased the number of transactions that can fit in a block, thus increasing the effective block space.

How Does the Concept of ‘Block Space’ Limit the Number of Transactions Included?
What Is a ‘Virtual Byte’ (Vbyte) in Bitcoin Transaction Sizing?
What Is a “Witness” in the Context of SegWit Transactions?
What Is ‘Block Space’ and Why Is It Limited?