I didn't smell anything, but with my wife on the back, at slow speed with a bump, I could hear a squeak. I checked it out and it was rubbing on a tiny bit of the nut cage that I thought I had cut down far enough.
Recommendation here:
Place the bike on your jack, remove the shocks and jack up the rear wheel (and spin it) untill you see where the tire will rub if it does. If I had of kept riding, it would have cut through the side wall.

Not good. Like, I said, I thought that I had trimmed the nut cage far enough.
If it will only rub on the underside of the fender then yes you or she may smell burning rubber.
Ride safe and enjoy
