Thanks for pointing this out. I have this bag (used a couple of days this spring), and can confirm that there is some kind of funky smell to it. It's weird, because I've also got a Couloir, and used to own a Hydrogen, and didn't experience that smell. Fortunately, Marmot's customer service is supposed to be very good.
AFAIK the seams aren't sealed, so I wouldn't recommend using the bag as a bivy by itself. Plus the shell fabric is not waterproof, despite what some of these stores say - 'highly water-resistant' is probably a better term. I can confirm that it beads off moisture extremely well.