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Strongly suggest AGAINST sleeping in a confined space with propane heat. BIG GAMBLE. Wanna stay warm in a -20 bag all night?? Fill 2 Nalgene bottles with boiling water, throw in sleeping bag 10 minutes before tucking in --warm all night. I suppose charcoal hand warmers in there would keep things toasty also.
Propane will work fine as long as you have a window cracked for ventilation. I would be more worried about the electric blanket draining the battery, converting electricity to heat takes a lot of energy.