Continuum Damage Mechanics (CDM) based progressive damage and failure analysis (PDFA) methods have demonstrated success in a variety of finite element analysis (FEA) implementations. However, the technical maturity of CDM codes has not yet been proven for the full design space of composite materials in aerospace applications. CDM-based approaches represent the presence of damage by changing the local material stiffness definitions and without updating the original mesh or element integration schemes. Without discretely representing cracks and their paths through the mesh, damage in models with CDM-based materials is often distributed in a region of partially damaged elements ahead of stress concentrations. Having a series of discrete matrix cracks represented by a softened region may affect predictions of damage propagation and, thus, structural failure. This issue can be mitigated by restricting matrix damage development to discrete, fiber-aligned rows of elements; hence CDM-based matrix cracks can be implemented to be more representative of discrete matrix cracks. This paper evaluates the effect of restricting CDM matrix crack development to discrete, fiber-aligned rows where the spacing of these rows is controlled by a user-defined crack spacing parameter. Initially, the effect of incrementally increasing matrix crack spacing in a unidirectional center notch coupon is evaluated. Then, the lessons learned from the center notch specimen are applied to open-hole compression finite element models. Results are compared to test data, and the limitations, successes, and potential of the matrix crack spacing approach are discussed.