Any loose connection is a bad thing. All current supplied by the battery has to return to the negative battery terminal (ground).Could this all be a grounding issue? I checked the nut off the chassis for the negative lead. Was a little loose so I tightened that. The lead going to the engine has +12v at that connection point. Positive terminal WAS a little loose upon inspection, could that have anything to do with it? Notice the burnt up fusible link in the previous pictures. I’m sure there is a short somewhere. Just not sure where. Had to put electrical tape over the negative lead from where it was rubbed. Notice where the wire runs from the battery thru that hole. That spot was rubbed off and wires were exposed. So I covered that up. This is where I believe the plastic burning smell was coming from.
You wrote, "The lead going to the engine has +12v at that connection point." What are you referring to?