@Combo
Wasn't going to post as am sure persons are that sick of hearing about my Lavatherm worries, but have solved the problem.
It turns out besides not having the hose connected to the collecting drawer one was inserting the heat exchanger/condenser improperly.
Directions simply say to *replace* the heat exchanger reversing the method of taking out (pulling out), however when one pondered what was going on whilst staring at the dryer things became clear.
Diagrams on the dryer tell one to pull the condenser unit down and then out. We were simply pushing it back in (again and again). So pulled the thing out and holding it up and pushing upwards reinserted then locked. For the first time one heard a "clunk" sound which meant the nozzle on end of heat exchanger was pushed into the opening in the rear of compartment that leads to the sump/drain pump. Long story short next load that was dried gave about 250ml of water. This water was lint filled and more importantly tinged with bits of blue. Since the hoodies one dried of that colour we take it to mean this was condensed water from this load.
As for where the water was going before we connected the drain hose to drawer properly and inserted the heat exchanger the right way, it cannot enter the room as vapor. Much of it as AEG technical service predicted leaked onto the floor behind and under the dryer. That conversation started by reminding us of our high school physics class; water will always seek a certain level.
The AEG Lavatherm dryer as told to us by AEG Canada is a sealed system. If water collects in the holding chamber before the pump that cannot or is not drained away it will overflow somewhere, but as water, and not turned back into steam. Of course if the sump overflows float will kick in and shut the machine down with proper warning signals as to the problem.
As for amounts of moisture leaking into the room as steam, we've not noticed any change in that regards. Warmth yes, as the dryer becomes very hot during use. Will be able to tell further when cold weather finally arrives and use of the dryer causes windows and or glass to become foggy.