Pegboard should never have outlines of tools painted on the surface.
I have a small amount above a small bench in the garage. In the shop, never.
In the garage I have things like scissors, padlocks, keys, a crescent wrench, and a few other things.
To mount I did not use the spacers, rather I ripped some 1/2" plywood and ran it across the top and bottom and added a few verticals, That all was glued and tacked with brads Back primed and front finished with high gloss spray with primer.
I plan to take it out as it still collects dust and what not. Plan to put up hard faced plywood and simply (slant)drill and insert 1/8" rod cut to whatever length Being able to install a few small shelves and a key/lock cabinet prompted this new plan.