Yes.
Well, no.
Imagine you are standing outside a bedroom door. On the floor, there's a dirty sweatsock. Do you figure that, when you open the door, the only think you'll see is dirty sweatsocks? Or do you expect to see the full panoply of stuff you'd see in, say, a teenage boy's bedroom?
No. The presence of this gas in the planet's atmosphere makes folks think of bacteria. But there could be a whole lot of stuff in addition to that bacteria.
No, dude, that "small red sun" is still burning so bright that we can see it 124 light hears away. That star is a little smaller, a little redder, than Earth's, but it is still a star, still an ever-exploding fusion bomb.