@Tim I had the smell issue as well. I would wash the cloths and then set a timer so I remember to go get them out and leave all the doors open. I used 2-3 different kinds of 'cleaners' to get the funk out. I got kind of OCD about it. Even wiping down the surfaces after every wash. Nothing worked. Until I switched from liquid (that the manufacture recommends to powder, tide specifically). My sister had the same issue and her smell issue is gone as well after she tried what I did. I went as far as putting a dehumidifier in the same room.

The liquids are based on petroleum. Once the perfume washes away all you have left is crude oil. Which has a nasty smell and something in them promotes mold growth.

It was 1-2 weeks after using powder the smell went away.

My wife is still pouting as the liquid was easier and less mess putting it in. I will however, not budge :)

tl;dr All powder and dryer sheets cleaned up the smell issue.