In my humble opnion, that ground cable is done and should be replaced.
That 16 gauge wire that goes from the ground clamp to the plug is an ignition ground
If that is dirty or un hooked, it will cause problems.
I cant see it in your picture, but that ground cable is supposed to have a terminal that bolts to the frame, then goes over had hooks up to the side of the engine block
.
The only other thing I see wrong with that ground cable, is that it should be bolted to the side of the engine block just under the exhaust manifold, in front of the motor mount, not to the manifold mounting bolt. The excesicive heat cycles of the manifold degrade the copper in the cable quicker.
Steve
86 Bronco, XLT, 5.0 EFI, EEC IV, AOD, IFS, limited slip front and rear, 3.08 gears, Tilt steering, factory AC