This paper studies spaces of generalized theta functions for odd orthogonal bundles with nontrivial Stiefel-Whitney class and the associated space of twisted spin bundles. In particular, we prove a Verlinde type formula and a dimension equality that was conjectured by Oxbury-Wilson. Modifying Hitchins argument, we also show that the bundle of generalized theta functions for twisted spin bundles over the moduli space of curves admits a flat projective connection. We furthermore address the issue of strange duality for odd orthogonal bundles, and we demonstrate that the naive conjecture fails in general. A consequence of this is the reducibility of the projective representations of spin mapping class groups arising from the Hitchin connection for these moduli spaces. Finally, we answer a question of Nakanishi-Tsuchiya about rank-level duality for conformal blocks on the pointed projective line with spin weights.