Combustion of anything can and will create varying amounts of carbon monoxide. The difference between creating carbon dioxide and carbon monoxide is the availability of oxygen to the combustion process. If you take a look at some of the specs of backpacking alcohol stoves (such as Vargos), you will see that they disclaim "Use only in well ventilated area / Do not use indoors".

I'm not saying you can't use them indoors. Just open a window and allow ventilation, just like when using a kerosene heater. But, the fact remains that there are better options available, such as devices designed to minimize carbon monoxide and be used indoors, such as said kerosene heater.