One of my other hobbies is sailing. I have a Newport on Lake Mead that had a Diesel heater in it when I bought it. The heater warmed the boat very well, but always had condensation on the walls near the hull and on the hull itself. Changed that heater out for an externally vented propane marine heater to get rid of the soot and dirt film on the decks that the Diesel caused. Still had the same amount of condensation. Changed that heater out for a Wave6(same one I now use in the camper) because the marine heater didn't heat very well. It had a pretty to watch flame, but who cares when your toes are cold? Had maybe a bit less condensation than before I think because now I was venting the air a bit. On to the FWC, had lots of condensation with the forced air furnace, mainly near the bed. Installed the reflectix panels on the sides and had ZERO condensation inside, but still wet between the vinyl and reflectix. I'm sure the amount of water between is reduced though, but haven't done a study on it yet. Added the Wave6 and the conditions are somewhat better than before, again I think because I'm venting the camper because of the Wave6. My guess is that it's more a warm vs cold surface area thing. Sure you have some water in the propane, but I think breathing is way more influential than the propane. I also think the condensation problems are greatly reduced with better insulation and better ventilation of the moist air.
John