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The generator needs both cooling and combustion air. Running it in an enclosed garage even when the exhaust is going outside will build up a lot of heat.
Quieting Generator Exhaust
I don't remember who posted it in the now MIA bugout thread, but this was brilliant:
Extend the generator exhaust down into a 55 gallon drum of water. Drill lots of holes along the entire length of the pipe that is in the water. Usual common sense precautions apply...