I do notice a slightly musty smell from time to time, that probably
is caused by the humid vapor. I remember when I first started, I always felt like I was in a steam sauna, or I just sprayed myself with one of those mister things to keep you cool - especially when I was in my car. If you have a lot of fabric around, it's probably soaking some of that in - I can totally see how the poor wet dog could get blamed for that kind of funk (poor dog).
I dunno if I've gotten immune to the smell or if it's just with certain flavors, but I do keep a bottle of Febreze around just in case.
