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R, 95 bytes

Just run through the upper case alphabet repeatedly while advancing a counter by 1 if you encounter the letter in the counter position of the word and printing out the letter, a space otherwise.

function(s)while(F>""){for(l in LETTERS)cat("if"((F=substr(s,T,T))==l,{T=T+1;l}," "));cat("
")}

Try it online!