1971 Duster exhaust smell in cabin after new muffler and tail pipe

Wagon tail pipes normally go out the side for that reason.
Deflector was to blow clean air over the back window to keep dust off. You have to remember there was a lot more dirt or gravel roads back then. The dust would swirl behind the flat wagon back and settle on the glass and sheet metal. The deflector aided that. My 82 Blazer had one also for that reason.
As did my old 1984 Dodge Ramcharger... Man I miss that truck.