Weird wire connector, not sure if stock or added

[MtD'ed_Bug]

AutoStick 1968 Bug

I need help and I don't know what to do with this or how the wires are meant to go

[MtD'ed_Bug]

How do I change the form index?

[MuzzcoVW]

It looks like the fuse holder for the reverse lamps. Do you have a wiring diagram? The orange Bentley manual is good for this...and lots of other stuff

[volksworld]

thats an older style fuse holder...push it together and twist it about 1/4 turn or less to separate the halves and remove the fuse...instead of male terminals on the ends like a later fuse holder, yours holds the stripped end of a wire in place with those small screws visible in the slots...so loosen them and the wire slides out...looks like the end of the wire broke off and someone just taped the fuse holder to the wire...possibly it was for the hot lead going to the auto stick shift solenoid...a fuse would also be present going to the reverse lights...on your year either one should come off the hot (15) side of the coil...the hot lead going to the coil is normally unfused (although some people add one as a precaution) and comes out of the main harness as a black wire...then the wires for the shift solenoid.reverse lights ,electric choke and idle cutoff jet all piggyback onto that side of the coil...its hard to tell with how you're holding everything together but i believe the wire with the red section spliced in is the hot lead to the coll and the smaller green wire goes to the oil pressure switch...and the fuse holder is taped to one of them

[GArBa]

that holder looks like it's made from 2 mis-matched halves? also it looks like it's just taped on the side of that black wire... where did you find it?
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cars:
'97 type 1 1600i
'14 type AA Seat Mii (sadly dead after 270.000 km)
'22 type C1 T-Cross
'23 type AC3 Hyundai I10 (VW no longer makes small cars!)
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moped:
'82 Benelli Magnum 3v

[MtD'ed_Bug]

The red wire also has a black wire and that wire is ripped off so I don't know where it goes.

[sb001]

You need to take some photos slightly further back of the engine bay with those wires visible so we can see what's already connected, would help us narrow down what those wires are for.
I agree with volksworld the fuse holder is likely for the wire that goes from your + coil terminal over to the autostick control valve, that should be on the left side of the engine bay but I don't see it in the second photo, maybe just the angle of the shot
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I'm the humblest guy on this board.

1969 autostick sedan, family owned since new
1600 SP engine
Solex 30 PICT 3 carburetor
Bosch 113905205AE autostick distributor