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240 auto - shifting bulb wiring. 200

Hello.
New owner of a 1990 240 wagon.
Been trying to diagnose why fuse #16 (passenger side rear light, and instrument panel) keeps popping every few days. So far...

- I've inspected the ashtray light console for any frayed wiring/shorts
- popped open the shifter console and check the wiring for the light.

The one thing I've noticed is the black wire on the shifter bulb is frayed and broken.
What is this wire? (Ground?) and could that be causing the problem?








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