The vents in the steps are the return air for the furnace. May not be a good idea to block them. If there isn't enough openings for air to get into the lower compartment from the living area, or enough cracks from the lower compartment to the outside air, and enough cracks from the living area to the outside air, the flow through the furnace will be restricted, possibly too much for it to work properly and it may possibly overheat and cause a fire. But I think everything else said was a "slam dunk".
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