Yes. Since the air is going out that window, and the propane hose should not have any fumes anyway, I put mine in the same area (I do bring the propane up through the floor of my shed, but the tank is right there.
The replacement air needs to be free of fumes, and the fumes go out the exhaust fan, so they should not be close.
Someone else may have different take on it, but that is what I do. I will take a photo and show you mine in a minute.
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