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By side wall I'm assuming you mean fenderwell. No, they go very nicely to the signal harness on the front of the radiator support.

I'd like to see a pic of that.

I think this is only really an issue if you plan on driving with one of your headlights out (the reason DOT made the change). I would embrace the difference. It's what sets your car apart from the rest, and also gives it a cool vintage look going down the road.

I don't know about '68 (lots of fed mandated changes between those years), but in 1967, the front parking lights did NOT stay on with the headlights. I actually liked that. If someone confirms that they should be on for a '68, then you might possibly have the wrong switch installed. Either way...