Headlight short

Power for headlights go into the switch at the B1 terminal.
The black wire from the alternator labled R6 is power output. Power comes from there, and if its not running, then the battery. Even with the key off, these wires are hot unless you disconnect the battery.

Scheme looks like this, although details vary from year to year.
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Headlights ground with a ring terminal to the radiator support sheet metal.

You could use the damaged connector and terminals if you put the headlights on relays. Then only a fraction of an amp needs to go through that wire and connection. In fact even once repaired, a headlight relay system is a great idea.
a) The original wiring was sized OK for the 40 Watt headlights used in the 60s. It was barely adequate for the higher Watt lamps that became common in the 1970s. The only saving grace of some of the halogen sealed beams (also sold as replacements in the later 70s and 80s) was the reduced power needed for the low beams (35 Watts). Perfomance did not improve with these halogens.

b) The path for power to the headlamps has to go from the alternator, through the headlight switch and all the way back to the headlights through the dimmer switch and firewall connectors. Long path with many connections results in loss of power and lower and lower voltage at the lamps. A relay system allows power to be drawn straight from the alternator (through fuses or circuit breakers).

c) With the headlights on relays, thats 9-10 amps that will never need to go through the firewall. That helps keep the R6 wire connection in the bulkhead connector (most years) from seeing excessively high current.

You can buy a kit from @slantsixdan or a plug and play from @crackedback.