I am not sure how to understand "I'm all-electric now".
If you are on grid, then use 120V space heater. This will be the driest and the cleanest.
If you are off-grid and don't have REALLY big solar and/or Lithium battery bank, with any electric heat you will have to run a generator pretty much all the time that you need that heat. The same goes for most of your other 120V devices.
Propane heat - other than furnace that burns in fact outside - will always introduce humidity, CO2 and some CO. These are by-products of burning propane, there is no way around it. The more you burn, the more humidity and CO2. Catalytic heaters burn less propane so there will be less humidity and CO2, and they also generate less CO than open-flame heaters. Venting will reduce humidity and CO/CO2, and will also reduce the efficiency a little.
I haven't seen any vented catalytic models lately, though with what little fumes and humidity they make, most RV-ers don't seem to need venting other than one window slightly open. I know what CO poisoning is (had it once), and tend not to trust marketing blurb easily, but those Olympian catalytic heaters are probably installed in hundreds or thousands rigs by now, with no fatalities reported.
12000 BTU is the smallest built-in propane heater that you found? Olympian heaters come in 3, 5 and 8K size and can be mounted recessed if you like. I just put mine on the wall, reinforcing thin plywood with backer.