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I think it's more likely coming from the blower motor. Hence the reduction in odor on ECO (motor runs slower). Would also account for smelling it with a/c on. Very unlikely the heater module could produce a smell inside the car. It heats water in a sealed unit on the firewall, in the engine compartment. It could foretell a blower motor failure though, but I've seen motors produce insulation smells when new that go away later. I run mine on auto fan mostly and it seldom runs at high speed for too long.
 
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