It's bath sealant - the same stuff they used to hold the number plate light in place and seal the exhaust joints.
Not sure about the twisted wire, I think that might have been fix No1.
The funny thing was when I took it for its MOT (without realising how the headlights were held in) it failed on headlamp alignment so I left it with the garage to fix, which they did, allegedly.
There's no way they could have adjusted the lights because they were jammed solid.
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