@Bill — There is a strong possibility the first time I ran into the word, it was used incorrectly, or I misinterpreted the usage as the process of laying tiles was described as spackle & grout. I have always assumed the spackle part was the glue holding the tiles and grout filled the space between. I see in the American usage, anyway, that Spackle is a brand of drywall crack filler!
For what it’s worth, the last drywall crack filler I used, came in a bucket from the local Home Depot. After drying it was still water soluble so a damp sponge could be used as sandpaper. The sponge was rinsed in a bucket of water and the excess ended up in the bucket. This was dust free.
The last time I had contractors doing drywall work, they sanded up a storm! The dust is so fine it just goes through regular vacuums. They are expensive, but Dyson vacuums separate almost all the dust before it gets to the final set of filters.