This is false. Space begins at 100km, the Karman line. New Shepard's typical apogee is about 107km, while this flight reached nearly 119km.

https://en.wikipedia.org/wiki/Kármán_line

The karman line, the generally agreed upon edge of space, is at 100km. This capsule apparently reached 118km.

It definitely didn't reach orbit and it isn't designed to be in space for long, but I wouldn't say it won't ever go to space.

My understanding is that the New Shepherd is designed for space tourism. With that in mind it is designed specifically to reach space.