Depends on the person. I can cut hottest pods in the world for hours in closed up garage, doesn't bother me at all. If I got in house and cut a nice pungent yellow moruga or similar in half my wife smells it in other room and lets me know about it. Few weeks back put all the cutting boards, knives, chopper, etc in dishwasher, and rest of family was coughing like crazy while in kitchen. It had no smell but must have been some fumes of capsaicin coming out. It all depends on the person, but typically non Chile heads have very little tolerance for the fumes also.
Yeah, I never have issues unless I'm directly over some cooking superhots and even then I'm usually just sneezing or coughing.
Question about cutting boards.. do you guys like using wood or plastic? I have a plastic board that I like to use for meats since I can toss it in the dishwasher to sanitize it. I was thinking that's probably the move for pepper prep also since I was thinking the capsaicin may leach into my good wooden boards over time.