I read a theory that life in the universe might be favorable because we increase entropy so much.

Life in the universe is pretty unfavourable! A rare thing indeed. Where it has evolved I think it is less about entropy and more about the nature of the matter - atoms, molecules. Particularly carbon and water. And the way they can replicate themselves through chemistry. That had to obey entropy but is not driven by it. Light scattering off the atmosphere will do the entropy trick well enough!

> A rare thing indeed

We can hardly know that, can we? Water and carbon are abundant.