It can displace air, causing death.
Here's one example of a death, although here they deliberately put the argon in there: http://maritimeaccident.org/2014/08/safespace-argoninert-gas...
I know argon is denser than air at STP, and so tends to accumulate in enclosed spaces --- but propane is even denser. (Leading cause of catastrophic accident in yachts: gas explosion. It's not like you can have a hole in the bottom to let the gas out in the event of a leak.) And any plant which deals with liquid gasses is going to prioritise ventilation anyway, which should easily deal with any gas buildup.
The parent sounded like there was something specific to do with argon which made the regulators tetchy, and I wouldn't have thought that asphyxiation risk would be enough. Am I wrong?