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.
You are right Dale Davies, that is what we were told it was for. Where does that dust come from? From under the car or rear window truck. If you think the dust is bad, try breathing the exhaust all day. I remember as a kid, my sister and I would sit in the rear seat at the tail gate. The wagon had no deflector and we would complain of the smell. If I'm not mistaken we would also get a headache.