2009 Other Peugeot Models Acrid Burning Smell

I recently purchased an ex-demo Peugeot 308cc (4 mths old 4k miles). Recently, when stuck in traffic (due to snow) we could smell a horrendous burning smell which at the time was so bad that we had to put the windows down. When I was stuck in the traffic, I put my gear in neutral and foot off the clutch and only engaged gears when there was a space to move forward. I thought at the time that perhaps the snow covering the vents outside had caused a hot burning smell within the cabin (blonde moment). I then didnt drive my car for 2 days. Next time I went to the car, it still smelt really badly of burning even though the car was parked, in neutral whilst I cleared the windscreen and windows. It continued to smell so I asked my partner to have a look. When he lifted the bonnet, the smell was distinctively noticeable when the lid to the wiring loom was lifted and so we took the car straight to the Peugeot garage. They smelt the burning and thought it was a stuck brake or something, but that wasn't the case and now the burning appears to have gone they think it's the clutch and have offered to change the clutch fluid. Does this sound right or possible? I do not understand cars or mechanical things but how can a clutch create such a bad, acrid burning smell when the gear is disengaged. Infact standstill in neutral, foot off the clutch the smell was at its strongest - once you started driving and using the clutch and gears the smell reduced slightly. Can someone please help? I'm still paranoid that the wiring loom smells of the same smell and worried that the dealer has just fobed me off?