I have a 2012 subaru outback with 4700 miles on it. Everytime I start the engine and let the car idle for warm up, the cabin smells like something is burning. I also smell it when I idle at a drive thru window or like that. I have had it to the dealer who said there was

SOURCE: I have a 96 Subaru Impreza, Is smell like burning

Your car is 13 years old. It is possible for the seal to actually wear a groove into the crank shaft or cam shaft end. Which ever is protruding and has a seal. It used to happen on all the older G.M. cars. (60's 70's). Usually with over 100K miles. You may be leaking just enough for the wind to blow the oil back onto the exhaust while driving. I've seen it, done it, and repaired it. One way to tell is to look for tiny oil spot on the lower part of the rear bumper or lower part of trunk lid. Oil sometimes will blow back that far. Now, even if they change the seal, it may not stop the leak. Back in the day, you used to be able to buy a "Sleeve" kit for the crank. It slides over where the groove is so the seal can make contact on an smooth, level surface.
Get a second opinion before moving forward. And be sure to get some sort of warranty if at all possible.
A long shot, see if a mechanic will put it up in the air on a lift and show you where it's leaking from. It should be pretty well spread out over the bottom of the motor and possibly the transmission.

Good Luck and I hope this helps.

SOURCE: 2005 subaru outback cabin air filter install

Yes the o5 outback has a cabin air filter and it is located behind the glove box. You have to remove the glove box, once you get it out of the way you will need to remove the 4 metal clips that hold it in place and make sure you put the filters in with the arrows pointing in the right direction for air flow. Other wise you will have restriction through the vents

SOURCE: A smell of burning rubber

i bet its a axle boot. split.. and you smell axle grease.. common issue