I asked Mr. Google " carrier e3 error code", and I found this.
The outdoor thermostat is in error, not connected, or shorted out. This code is displayed only if auxiliary heat and/or cool lockout feature is enabled.
What this means is that your o.d. unit has a component failure. The smeel you have inside is probably you electric heat elements that are energized. And if they haven't been energized in a while, its burning off some debris.
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