It's either a faulty wire or maybe a duff projector (Do these tend to go?)What's wrong with your current one? You can swap out the entire projector easily enough...
Wow that does look bad, don’t think mines that bad , managed to get some pics but hard to make sense of themSounds like your loom is buggered - inside the headlight. You can double check it's the headlight and not the car loom by swapping headlights over (pins are the same) to troubleshoot the problem.
I've seen similar on headlights I've cut apart. The insulation on the wires degrades over time. I'm sure there will be factors which speed up this process. Thankfully it's fairly uncommon. But have seen it a few times. Similar to the below FYI.
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