Here's the normal operation cycle of this water heater:
It's normally a 3 try ignition cycle. When you initially turn on the DSI (Direct Spark Ignitor) switch inside your RV, then the gas valve opens and the DSI makes sparks (it's a ticking sound).
Once the propane ignites, the DSI quits making sparks. However if the propane doesn't ignite, then the DSI will also quit making sparks in a few seconds and the propane quits flowing.
After a brief interval (which gives time for propane to clear out of air), the ignition sequence starts again for second try. here again if it lights, all is well, but if not...the DSI quits and the propane stops.
Then after yet another brief period in order to clear propane out of the air. there is a third and final attempt. If it it doesn't light this time, the whole system locks out. You have to turn off the dsi switch inside the RV to reset the lockout..then turn it back on again to restart the three strike process.
The gas you smelled could have been from the DSI not igniting the gas, and was residual from the failed 3 strikes. You always want to make sure you allow enough time for the gas to dissipate before attempting the reset.
If your burner flue is stopped up with bug/critters, then it won't ignite right either. You may want to see if you can blow some compressed air thru it or such to clean it out...as if it is clogged, the propane can't properly reach the other end, where the DSI is.
Some members remove it to clean, which requires you to unscrew the gas line from the bottom of the propane regulator, and then unbolt the other end where it meets the spark ignitor.
Now, do you see the orangish color wire at the bottom right of your own pic, with a boot on it looking similar to a spark plug. This is the wire to your DSI ignitor that makes the electric spark. You may can make sure it's getting good connection and is not loose. Its just got a 1/4 inch female wire connection to the spark ignitor. Both wire and piezzo sparker are pictured below