The cold air that leaves the vent cools down the average temp in the car. Then the lower average temp air in the car gets sucked in and gets pumped back to the business end of the AC to get cooled down even lower to be blown out of the vent and repeating the cycle.
But no, CO2 poisoning is not possible that way. Your car isn’t completely sealed and the AC also does take in a bit of fresh air from outside.
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