The regulator should always be mounted in a protected location OUTSIDE the vehicle for a couple of reasons.
1. So that no high pressure fuel is within the passenger compartment. This is for safety in the event of a hose failure, fitting failure, leak or any other release of fuel so that you would have an almost instantaneous build up of fuel, in an enclosed space, with absolutely no warning or opportunity to vent. At least with only low pressure, the scent of odorized LPG would exhibit its intended function before a leak becomes past critical.
2. The regulator's vent should be outside any vicinity of open flame, and not in an enclosed area. The regulator vent allows the regulator to "breathe" during normal operation and functions as a pressure relief opening in an overpressure situation. It should remain free of dirt and debris for the purpose of safety. Regulators vent openings must be pointed down, covered and protected, but never enclosed.
Propane regulators are manufactured with pressure relief devices built inside the regulator body and operate in a similar manner as that of a tank pressure relief valve. If triggered, the relief valve will open and allow gas to escape through the regulator vent. The vent needs to remain unobstructed so that the gas may escape if necessary.
As regulators age, a possible failure is their diaphragms can become brittle and crack, thus venting propane though the vent. That is not something you would want to happen in an enclosed area with an open flame. In this event, you definitely want the fuel on the outside of the van, and not inside. In may cases, you will find regulators affixed directly to the tank, which is also similarly placed.
it is simple a matter of safety to have the high pressure portion of the fuel system outside the vehicle compartment, and the vent opening in a location outside that same compartment, especially in the vicinity of an open flame (pilot).
Sure it takes a tiny bit of planning to do so, as you have to compensate for pressure drops on the low pressure side with good plumbing technique, regulator adjustment and burner port pressure reading during initial installation. But the peace of mind really pays off.