Your heater core needs to be replaced. It's located on the passenger side , under the dash. The heater core is like a small radiator. Coolant from the engine is circulated through it, and that is what provides heat in the car. The heater core is leaking, causing the 'vapor' through the vents, and leaking on the carpet on the passenger side. Heater cores are a pain to remove and replace, it's quite a labor intensive job.
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