Things you Find

Let me ask the question that will be important...what year Barracuda is it, as they're only an "A" body through '69'. I'm pretty sure that a 360 didn't come out till '72'.

My experience is with early Barracuda's but the bulk head connectors are largely the same in concept.

In my opinion, bad electrical work will always come back to haunt you, with enough time. There are very intelligent people here that will give you good info...I'll offer my thoughts:
There should have been a "fuseable link" that may have saved this from happening...in short, there must have been a 'short' to cause this and this kind of damage.
If the damaged wire is from a short circuit, than the bulk head must have melted the and permanently trapped the connector stake....I've seen that before
I'd get a wiring harness and replace it, or get a bulkhead connector with enough lead to get a good repair away from the connector...I possibly have one, depending on the year.
The new alternators connect up a little different than my original did, as there is now an extra electrical 'stake' on the alternator that needs to go 'ground'...at least on mine.

Good luck and I hope this helps...from Massachusetts