Just got first camaro, it was kind of thrown together so i'm not sure exactly whats wrong here

there's also a red light that flashes under the defroster grill

the car's a 97 rs 3.8 auto

 

Your car is a 97, which has the newer interior. That plastic dash "pad" you have is for a 93-96, different shape.
It must fit like crap over the gauge cluster too, with having no hump. Compare the shape of the: 93-96 to the: 97-02
Even with that, I'm seeing a difference in the grill placement on yours.
As far as the light in the grill, it's most likely a monitor pea light that someone added, like for an aftermarket alarm or something else.

 

I did some looking and it turns out that the "dash pad" is from a 93-96 firebird/trans am

 

That explains the grill difference, still wrong fit for your car though. Does the right part of your dash look like it's been messed with? It looks like it's popping up and out of place some. Might wanna make sure nobody was messing with your air bag too, just in case the car was in a wreck.

 

My GM repair manual says the red light is the security indicator lamp. I have one on my '98 as well.

 

I wonder if maybe that was a 97 and up feature? My 96 didn't have a light for the factory security. Anybody else 96 and older have it?

 

thats strange that someone would do that, musta got a steal, the 93-96 dash pad is more expensive that the 97-02.

 

Yeah i was told that the previous owner built drag cars, mine was said to be his daily driver, so i would imagine he would have a lot of extra parts around.