Hi,
The orange thing is simply a rubber wiring insulator to prevent anything from touching that wire. It will always have power and will short if grounded.
As far as the wire you found, what color is that? It appears to be a fusible link. If the wires are white with the red tracer, the fusible link needs to be replaced.
A fusible link, in this case, appears to be a typical wire, but they are designed to fail just like a fuse if there is too much power through them.
Let me know. Note If you look at the first pic I attached above, you will see fusible link 26, 120 amp. That is what goes to the white/red wires to the alt.
Let me know. Also, the fusible link runs from the battery to the alternator. I attached a pic below showing where it connects.
You will likely need to buy one specific to this vehicle. If you can't find one, we'll have to make one.
Let me know.
Joe
See pic below.
Image (Click to make bigger)
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Tuesday, November 8th, 2022 AT 7:15 PM