Hi Ed,
It is waste heat, and combustion by products. Such things are often corrosive. I would not want a leak in a pipe which was intended to attempt to keep the battery box a bit warmer.
It, to me, is surprising that they are 80% efficient. Like any hydrocarbon, propane when completely burned produces carbon dioxide and water; these are not too bad, although you could use up enough oxygen and produce enough carbon dioxide to suffocate anyone in the building. Complete combustion never happens in the real world, and so you end up with partial combustion products of which the worst is carbon monoxide, which combines readily with the hemoglobin in the blood, displacing oxygen and suffocating the victim.
When I have enough shore power I can heat totally electrically down to -27 C (-16.6 f).