Did you also remove the cover and take a reading of the exhaust?
My car, when well tuned, is down in the 1 ppm CO range according to smog check. These generators, not having O2 sensor controlling mixture, air injection, or catalyst probably do create enough CO to trip the alarm, but would be interesting to check. Propane equipment (Bobcat, floor polisher) is operated indoors, and I think CO only becomes a problem if O2 levels drop. Gasoline & diesel generators are known for carbon monoxide even operating in fresh air, and if their exhaust gets indoors it can be deadly.